Under accrual accounting, revenues are recognized when:
I. Sales are made.
II. The earnings process is complete.
III. The realization of payment is reasonably assured.
IV. Cash is received from outside sources.
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A. B. C. D.D
Both are required for earnings to be recognized. IV is not true under accrual accounting and I is incorrect since even after a sale is made, realization of payment may be doubtful or there may be a high probability of merchandise return.