Question

Based on the recognition principle, revenue is recorded on the financial statements when the: I. payment is collected for the sale of a good or service. II. earnings process is virtually complete. III. value of a sale can be reliably determined. IV. product is physically delivered to the buyer.

Answer 1

Answer:

IV. product is physically delivered to the buyer.

Explanation:

Actually the recognition occurs when goods are transferred or services rendered. In this case since we talk about a physical good, the recognition of the revenue occurs when the good is in the possession of the buyer.