Explain in what situations it would be appropriate to recognize revenue over time
Chapter3: Analyzing And Recording Transactions
Section: Chapter Questions
Problem 9MC: Which of the following is the principle that a company must recognize revenue in the period in which...
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Revenue is recognized for accounting purposes when a performance obligation is satisfied. In some situations, revenue is recognized over time as the fair values of assets and liabilities change. In other situations, however, accountants have developed guidelines for recognizing revenue at the point of sale. Explain in what situations it would be appropriate to recognize revenue over time. Ignore income taxes.
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