A company accepts a customer's order on November 30 and immediately delivers the goods to the customer. On December 1, the company sends the customer an invoice stating payment is due no later than January 1. The company receives a check from the customer for the full amount due on December 22. The company follows the revenue recognition principle and accrual-basis accounting. On what day should the company recognize revenue for this order?A) November 30B) January 1C) December 31D) December 22E) December 1

A) November 30

Explanation:

Based on accrual principle of accounting, revenue is recognized when it is earned and not necessarily when cash is received.

Revenue is said to be earned when the obligation of the delivery of service or goods sold has been met.

As such, where a company accepts a customer's order on November 30 and immediately delivers the goods to the customer, revenue is said to be earned (and will be recognized ) on the day of delivery.

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lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o