The Revenue Principle States That Revenue Should Be Recognized at a Point

Multiple Choice

The revenue principle states that revenue should be recognized at a point when

A) an exchange transaction involving goods and services has occurred and the earnings process is essentially complete.
B) an order for shipment of a definite amount of merchandise has been received.
C) a contract between buyer and seller has been signed by both parties.
D) the seller has shipped merchandise to a customer under the terms that the customer need not pay for the merchandise until it is sold.