Which of the following is not required for the recognition of revenue?
A) Receipt of cash by the seller at the time of sale.
B) Seller must receive an item ultimately realizable in cash, noncash resources, or claims to cash.
C) The earnings process must be essentially complete.
D) The transaction must create a measurable financial statement element which fulfills the definition of a revenue.

Question

Quizplus · Accepted Answer

Receipt of cash by the seller at the time of sale is not required for the recognition of revenue. Revenue can be recognized even if the payment is received later through credit terms or other arrangements. The other options, B, C, and D, are all necessary criteria for recognizing revenue.

Which of the Following Is Not Required for the Recognition