Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 2 - Conceptual Framework for Financial Reporting - Questions - Page 68: 20

Answer

Revenue/income for Selane Eatery should be recognized at the time the luncheon is served.

Work Step by Step

Revenue/income should be recognized when it is earned, realizable or realized. The most common time at which these two conditions are met is the point at which the item or stock is delivered or rendered.
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