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JME Corporation bills its customers when services are rendered and recognizes revenue at the same time. This event causes an

Option 1: Revenue Recognition Event
Option 2: Billing Transaction
Option 3: Service Revenue Impact
Option 4: Sales Recognition

1 Answer

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Final answer:

The event described where JME Corporation bills and recognizes revenue when services are rendered is known as a Revenue Recognition Event. This follows the accrual accounting principle of recognizing revenue when it is earned.

Step-by-step explanation:

When JME Corporation bills its customers at the time services are rendered and recognizes revenue simultaneously, this event is best described as Option 1: Revenue Recognition Event. Under accrual accounting principles, revenue is recognized when it is earned and realizable, which is regardless of when the payment is received. This approach adheres to the matching principle, where expenses are matched with the revenues they help to generate in the same period. In JME Corporation's case, rendering services and billing for them initiates the revenue recognition point, since the service has been provided and, thus, the company has earned the revenue.

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