Which of the following is not a criterion pertaining to revenue recognition for the sale of goods under the earnings approach?
A) Amount of returns is known with certainty.
B) Collection is reasonably assured.
C) Amount of the revenue can be reliably measured.
D) Significant risks and rewards of ownership have been transferred to the buyer.

Question

Quizplus · Accepted Answer

Under the earnings approach, the amount of returns does not need to be known with certainty, but rather can be estimated. The other options are criteria for revenue recognition.

Which of the Following Is Not a Criterion Pertaining to Revenue