Weygandt, Accounting Principles, 12e Chapter 3.3

3-3.  
Susan Hardy, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Hardy's law firm prepares monthly financial statements, when should it recognize revenue from this engagement? Why?

3.       The law firm should recognize the revenue in April. The revenue recognition principle states that revenue should be recognized in the accounting period in which services are performed.

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