Revenue likely is recognized over time for all the following arrangements except for
A) Bank earning interest on a long term loan.
B) Construction of a building.
C) Providing a two-year gym membership.
D) Manufacturing generally stocked items ordered by a favored customer.

Question

Quizplus · Accepted Answer

Manufacturing generally stocked items ordered by a favored customer does not meet any of the criteria for revenue recognition over time. The fact that the items are ordered by a favored customer doesn't matter, as they are generally stocked and therefore not specific to that customer.

Revenue Likely Is Recognized Over Time for All the Following