The SEC requires all of the following for revenue to be recognized except:
A)cash is collected.
B)persuasive evidence of an arrangement exists.
C)delivery has occurred or services have been rendered.
D)the seller's price to the buyer is fixed or determinable.

Question

Quizplus · Accepted Answer

The SEC does not require that cash be collected in order for revenue to be recognized. Rather, revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the seller's price to the buyer is fixed or determinable, and collectibility is reasonably assured.

The SEC Requires All of the Following for Revenue to Be