Which of the following is not normally a condition that must be met for revenue to be recognized (recorded) under the revenue principle?
A) The earnings process is complete or nearly complete.
B) The promise to perform an exchange in the future has been made.
C) Collection of receivables from credit sales is reasonably assured.
D) The amount of revenue can be measured reliably.

Question

Quizplus · Accepted Answer

The revenue recognition principle typically requires that the earnings process is complete or nearly complete, collection is reasonably assured, and the amount of revenue can be measured reliably. A promise to perform an exchange in the future does not meet these criteria for revenue recognition; instead, revenue is recognized when the goods or services are delivered or performed, not merely promised.

Which of the Following Is Not Normally a Condition That