When is revenue considered to be earned? a: revenue is earned when it is realized or realizable. b: revenue is earned when a company has substantially completed its performance obligation in order to be entitled to the benefits represented by the revenues. c: revenue is earned when assets received by the company in exchange for goods or services are readily convertible to known amounts of cash or claims to cash. d: revenue is earned when a company exchanges goods or services for cash or claims to cash.

Explanation:

A company earns income by selling goods and services, and the total income earned by the company is called revenue. It is on the top of the income statement and also refers to the company's gross sales. Some companies call it net sales because it includes returns of merchandise by the customers. It is different from the earnings as the earnings are the bottom line of the income statement and is the net profit earned by a company for a period.

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