Which of the following is a condition required by the SEC for the recognition of revenue?
A)Completion of goods manufactured.
B)Execution of a promissory note.
C)Price in excess of $100.
D)Reasonable assurance of collection.

Question

Quizplus · Accepted Answer

The SEC requires reasonable assurance of collection as a condition for recognizing revenue. This means that the seller must have a high likelihood of receiving payment from the buyer before recognizing revenue. Completion of goods manufactured, execution of a promissory note, and price in excess of $100 are not conditions required by the SEC for the recognition of revenue.

Which of the Following Is a Condition Required by the SEC