Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 2 - Conceptual Framework for Financial Reporting - Review and Practice - Questions - Page 62: 22

Answer

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

Work Step by Step

Ideally, revenue are normally recognized when a performance obligation is satisfied and specifically in the case of a service its recognized when the service has been performed.
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