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26 July, 18:18

Norfolk Southern Corporation reports revenue in its income statement when the performance obligation is satisfied instead of when the cash is collected?

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  1. 26 July, 19:46
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    It is when performance of obligation is satisfied.

    Explanation:

    According to Accounting principle, revenues are recorded only when it is earned, even when cash is yet to be received.

    This implies that revenues or income should be recognized when the services or products are provided to customers regardless of when the payment takes place.

    When buyer is yet to pay, this will be debited to account receivables while sales account is credited.
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