All of the following are necessary for revenue recognition under GAAP, except?
A)The earnings process is substantially complete.
B)The amount can be measured.
C)Collection is reasonably assured.
D)The buyer and seller have signed a contract.

Question

Quizplus · Accepted Answer

While a contract may provide evidence of an agreement between buyer and seller, it is not necessary for revenue recognition under GAAP. The other options (A, B, and C) are all necessary criteria for revenue recognition.

All of the Following Are Necessary for Revenue Recognition Under