Under U.S. GAAP, what is a condition for revenue to be realized or realizable?
A) Cash or fixed claims to cash are received.
B) Contracts are written as per negotiations.
C) The company exchanges a good or service.
D) Both A & C

Question

Quizplus · Accepted Answer

Under U.S. GAAP, revenue is considered realized or realizable when cash or claims to cash are received (A) and when the company has exchanged a good or service (C). Both conditions are necessary for revenue recognition.

Under US GAAP, What Is a Condition for Revenue to Be