Question

On November 15, Meier Company received $3,000 cash from a customer for services that were performed on November 1. According to the Revenue Recognition Principle, on which date should the revenue be recorded?

a.November 1.
b.November 15.
c.One-half on each date.
d.Neither.

Answer 1

According to the Revenue Recognition Principle, revenue should be recorded when it is earned.

Step-by-step explanation:

The Revenue Recognition Principle states that revenue should be recorded when it is earned, regardless of when payment is received. In this case, the services were performed on November 1, so the revenue should be recorded on November 1, when the company earned it.