If a company has an agreement to deliver software that does not require significant production, modification, or customization, it recognizes revenue when persuasive evidence of an agreement exists and
A)delivery has occurred
B)the seller's fee is fixed or determinable
C)collectibility is probable
D)all of these

Question

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According to the revenue recognition principle, revenue should be recognized when persuasive evidence of an agreement exists, delivery has occurred (which is usually when the software is downloaded or made accessible to the customer), the seller's fee is fixed or determinable (which means that the price is agreed upon or can be estimated with reasonable accuracy), and collectibility is probable (which means that payment is expected to be received). Therefore, all of these conditions must be met before revenue can be recognized for software sales that do not require significant production, modification, or customization.

If a Company Has an Agreement to Deliver Software That