Which of the following statements about the SEC's criteria for revenue recognition is incorrect?
A) Normally, collectability needs to be reasonably assured.
B) The seller's price must be fixed or determinable.
C) Delivery of goods or services must have occurred.
D) There must be a written, signed contract as evidence of an agreement between the buyer and seller.

Question

Quizplus · Accepted Answer

Although a written, signed contract can be helpful in demonstrating an agreement between the buyer and seller, it is not always required for revenue recognition. The other three criteria (collectability, fixed/determinable price, and delivery) are generally considered more important in determining when revenue should be recognized.

Which of the Following Statements About the SEC's Criteria for Revenue