Revenue from sale of products, ordinarily is reported as part of the earnings in the period when:

Correct option is A

Revenue from the sale of products is recognized in the period when the sale is made, as per the realization concept in accounting. This principle states that revenue is recognized when the risks and rewards of ownership have been transferred to the buyer, and the amount of revenue can be reliably measured. The revenue is recorded even if the payment is not immediately received, provided the sale is completed, and the obligation to deliver is fulfilled.
Information Booster:
· Realization Concept:
· Revenue is recognized at the point when a transaction is completed, regardless of when the cash is received.
· For goods, this typically occurs when the goods are delivered or made available to the customer, and ownership is transferred.
· The concept ensures that financial statements reflect accurate and timely performance results for a given period.
Additional Knowledge:
· The cash is collected (Option b): This aligns with the cash basis of accounting, where revenue is recorded only when cash is received. This is not used under accrual accounting, which follows the realization principle.
· The products are manufactured (Option c): Manufacturing does not directly result in revenue until the products are sold. Production costs are initially recorded as inventory.
· The profit is computed (Option d): Profit computation occurs after revenue and expenses are recorded. Profit is not a basis for recognizing revenue.