Revenue Recognition and Accounting for Unreceived Payments | CFA Level 1 Exam Prep

Revenue Recognition and Accounting for Unreceived Payments

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Question

At the end of a fiscal period, any revenue that has been earned but the company has not received payment for should be debited to an appropriate

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Revenue should be recognized in the period in which it is earned and is credited to the appropriate revenue account. If payment has not been received, then a debit entry to Accounts Receivable must be booked.