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      Question

      As per AS 9, revenue from sales of goods should be

      recognized when:
      A The order is received. Correct Answer Incorrect Answer
      B The goods are manufactured. Correct Answer Incorrect Answer
      C The significant risks and rewards of ownership are transferred to the buyer. Correct Answer Incorrect Answer
      D The payment is received. Correct Answer Incorrect Answer
      E The delivery is initiated. Correct Answer Incorrect Answer

      Solution

      AS 9 states that revenue from sales should be recognized when the seller has transferred the significant risks and rewards of ownership to the buyer and retains no effective control over the goods.

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