- CFA Exams
- CFA Level I Exam
- Study Session 7. Financial Reporting and Analysis (2)
- Reading 21. Understanding Income Statements
- Subject 2. Revenue Recognition
CFA Practice Question
Revenue should generally be recognized ______.
A. at the time of cash collection
B. when realized
C. when realized or realizable and earned
Explanation: To be recognized, revenue must meet both criteria of being earned and realized/realizable.
User Contributed Comments 2
| User | Comment |
|---|---|
| kalps | Revenue must be earned and realised/realisable for it to be recognised - this is poor need to get this right |
| cfatime21 | yeah got this one! |