Asked by Rainn Cline on Apr 28, 2024
Verified
Revenue is earned only when money is received.
Revenue
The total income generated by the sale of goods or services related to a company's primary operations before any costs or expenses are deducted.
- Gain insight into the essential components of the accounting equation and its impact on business functioning and financial disclosure.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
False
Explanation :
Revenue is earned when goods or services are delivered, not necessarily when money is received. However, the receipt of payment for goods or services is a key component in recognizing revenue for accounting purposes.
Learning Objectives
- Gain insight into the essential components of the accounting equation and its impact on business functioning and financial disclosure.