If the critical event and measurability conditions are not satisfied,revenue may be recognized after the sale
A)when legal ownership passes to the seller.
B)when cash is collected.
C)as the goods are shipped.
D)on the receipt of goods by the customer.

Question

Quizplus · Accepted Answer

When the critical event and measurability conditions are not satisfied, revenue recognition may be deferred until cash is collected. This approach ensures that revenue is recognized only when it is reasonably certain, which aligns with the conservatism principle in accounting.

If the Critical Event and Measurability Conditions Are Not Satisfied,revenue