Which of the following is generally not a guideline for recognizing revenue?
A)The sale or performance effort is substantially complete.
B)Collection is reasonably assured.
C)Management declares that revenue should be recognized.
D)The amount is determinable.

Question

Quizplus · Accepted Answer

Management declaring that revenue should be recognized is not a valid guideline for recognizing revenue. Guidelines for recognizing revenue typically focus on objective factors such as whether the sale or performance is substantially complete, whether collection is reasonably assured, and whether the amount is determinable. The determination of when revenue should be recognized should be based on these objective criteria, rather than on management's subjective declaration.

Which of the Following Is Generally Not a Guideline for Recognizing