The revenue recognition principle The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed. Performance obligation Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract. To discuss: The amount and timing of revenue recognition.

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Chapter 5, Problem 5.39BE

To determine

The revenue recognition principle

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Performance obligation

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To discuss: The amount and timing of revenue recognition.

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