Q:

Accounting standards require that revenue must be realized or realizable and earned before it can be recognized. Discuss what is meant by the terms realized or realizable and earned

belongs to book: AUDITING & ASSURANCE SERVICES | A Systematic Approach|William F.Messier, Steven M.Glover, Douglas F. Prawitt|10th Edition| Chapter number:10| Question number:10.1

Ibrahimhamm

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2022-06-29

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Ibrahimhamm

2022-06-29

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Revenue is realized when a product or service is exchanged for cash, a promise to pay cash, or assets that can be converted into cash. Revenue is earned when an entity has substantially completed the earning process, which generally means a product has been delivered or a service has been provided.

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