All of the following are criteria for revenue recognition under the SEC except
A)persuasive evidence of an exchange arrangement exists.
B)delivery has occurred or services have been rendered.
C)collectibility is reasonably assured.
D)the buyer's price to the seller cannot be determined until future performance occurs.

Question

Quizplus · Accepted Answer

The other three criteria (persuasive evidence of an exchange arrangement, delivery/service rendered, and collectibility reasonably assured) are generally accepted criteria for revenue recognition, however, the buyer's price to the seller cannot be an obstacle in recognizing revenue as long as the other criteria are met.

All of the Following Are Criteria for Revenue Recognition Under