218k views
1 vote
What conditions must be met for a company to include a transaction in reported revenue for a given period?

User AndrewPt
by
6.2k points

1 Answer

0 votes

Answer:

Conditions to be met by a company to recognize a transaction in revenue for a given period are:

  • It should provide a benefit and shall be calculated and defined in numerical and monetary terms.
  • It should relate to any kind of service or products provided.
  • It shall be accrued in the current financial period.
  • All the risk and rewards related to the service or product shall be transferred.
User Brad Lawrence
by
6.8k points