on december 15, 2025, a company receives an order from a customer for services to be performed on december…

on december 15, 2025, a company receives an order from a customer for services to be performed on december 28, 2025. due to a backlog of orders, the company does not perform the services until january 3, 2026. the customer pays for the services on january 6, 2026. the revenue principle requires the revenue to be recorded by the company on: a. january 3, 2026. b. december 15, 2025. c. january 6, 2026. d. december 28, 2025.

on december 15, 2025, a company receives an order from a customer for services to be performed on december 28, 2025. due to a backlog of orders, the company does not perform the services until january 3, 2026. the customer pays for the services on january 6, 2026. the revenue principle requires the revenue to be recorded by the company on: a. january 3, 2026. b. december 15, 2025. c. january 6, 2026. d. december 28, 2025.

Answer

Brief Explanations:

The revenue principle states that revenue should be recognized when it is earned, which is when the services are performed. In this case, the services are performed on January 3, 2026. The date of receiving the order (December 15, 2025) and the date of payment (January 6, 2026) are not relevant for revenue recognition under the revenue principle.

Answer:

A. January 3, 2026.