Question

When goods are sold but delivery is delayed at buyer's request and buyer takes title and accepts billing, revenue should be recognized__________.

• A. at the time of sale notwithstanding that physical delivery has not been completed so long as there is every expectation that delivery will be made
• B. when the goods are actually delivered
• C. when the cash is received
• D. when advance against goods sold but not yet delivered is received

Answer 1

The correct option is A at the time of sale notwithstanding that physical delivery has not been completed so long as there is every expectation that delivery will be made

When goods are sold but delivery is delayed at buyer's request and the buyer takes the title and accepts billing, revenue should be recognized at the time of sale notwithstanding that physical delivery has not been completed so long as there is every expectation that delivery will be made.