Air france collected cash on february 4 from the sale of a ticket to a customer on january 26. The flight took place on april 5. According to the revenue recognition principle, in which month should air france have recognized this revenue?.

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21-09-2022
Business

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Air france collected cash on february 4 from the sale of a ticket to a customer on january 26. The flight took place on april 5. According to the revenue recognition principle, in which month should air france have recognized this revenue?.

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zhellaley zhellaley · Answer 1 · 2022-09-23T11:32:00-04:00

The revenue recognition principle states that air france should have declared this revenue in April.

The revenue recognition accounting concept states that revenue must be reported as it is earned. So the question is: When does a company's revenue start to "emerge"? One major event that prompts the recognition of revenue is the delivery of the items to the consumer.

Simply put, revenue recognition seeks to establish when a business has actually generated profits. Revenue is typically recorded whenever the performance obligations are deemed satisfied, and the organization can easily quantify the financial amount.

Learn more about revenue recognition https://brainly.com/question/14244666

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