When revenue is earned from the provision of services, all of the following are necessary for revenue recognition EXCEPT
A) economic benefits from the transaction will flow to the seller.
B) the amount of revenue can be reliably measured.
C) the costs incurred to complete the transaction can be reliably measured.
D) the seller has no continuing involvement.

Question

Quizplus · Accepted Answer

The seller's continuing involvement is not a necessary condition for recognizing revenue from the provision of services. The other conditions listed (economic benefits flowing to the seller, reliable measurement of revenue and costs incurred) are necessary for revenue recognition.

When Revenue Is Earned from the Provision of Services, All