Which of the following are part of the criteria that must be met when accounting for a contract with a customer?
I. Commercial substance.
II. Approval of contract by all parties.
III. Identification of the payment terms for the goods/services.
IV. The collection of the consideration from the customer is remote.
A) I, III and IV.
B) II and III only.
C) I, II and IV.
D) I, II and III.

Question

Quizplus · Accepted Answer

Criteria for accounting for a contract with a customer include commercial substance, approval of contract by all parties, and identification of the payment terms for the goods/services. The collection of consideration from the customer being remote is not a criteria but rather a factor that may impact revenue recognition.

Which of the Following Are Part of the Criteria That