All of the following are criteria that must be met before revenue can be recognized except:
A)revenue must be earned
B)the amount earned is measurable
C)all sales returns and allowances have been recorded
D)there is reasonable assurance as to the collectibility of the amount earned

Question

Quizplus · Accepted Answer

While recording sales returns and allowances is an important step in recognizing revenue accurately, it is not a criteria that must be met before revenue can be recognized. The criteria that must be met are that revenue must be earned, the amount earned is measurable, and there is reasonable assurance as to the collectibility of the amount earned.

All of the Following Are Criteria That Must Be Met