Revenue Recognition and Expense Recognition Video Lessons

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Problem: Tom's Wear purchased plain T-shirts and printed logos on the T-shirts in January. The T-shirts were sold to customers in February. Tom's Wear received the final cash payments in March. According to the realization principle, when should revenue be recorded? A. January B. February C. March D. record revenue in both February and March E. record revenue in January, February, and March

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Problem Details

Tom's Wear purchased plain T-shirts and printed logos on the T-shirts in January. The T-shirts were sold to customers in February. Tom's Wear received the final cash payments in March. According to the realization principle, when should revenue be recorded?

A. January

B. February

C. March

D. record revenue in both February and March

E. record revenue in January, February, and March

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What scientific concept do you need to know in order to solve this problem?

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Based on our data, we think this problem is relevant for Professor Smith's class at OSU.