1. What does the phrase, Revenue is recognized when earned mean?

a. Revenue is recorded in the accounting records and reported when the cash is received from the customer.

b. Revenue is recorded in the accounting records and reported when the goods are sold to a customer and when the cash payment is received from a customer.

c. Revenue is recorded in the accounting records and reported when the goods are sold to a customer.

d. Revenue is recorded in the accounting records and reported only after goods are received from a supplier, sold to a customer, cash is received and is reported onto your income statement.