Revenue is traditionally recognized in the accounting records when a. cash is received. b. services are rendered. c. it's incurred. d. none of the above balance.
The correct answer is choice b.
Revenue is normally recognized when the services are rendered. At this point in the accounting cycle you would make an entry to record the sale. It would be a credit to Sales/Revenue and a debit to either cash or accounts receivable.
Option 'B' and 'C' are correct.
Revenue is traditionally recognized in the accounting records when services are rendered and it's incurred.
Like when we incurred a commission to complete their given targets.
So, Services are already and it has been incurred so, Revenue is recognized in the accounting records .
Hence, Option 'B' and 'C' are correct.
In this case, A. cash is received makes the most sense.