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

Cash collection is not required for revenue recognition according to SEC guidelines. Revenue can be recognized even if payment is deferred or made in installments as long as the other criteria (persuasive evidence of an arrangement, delivery or service, fixed or determinable price) are met.

The SEC Requires All of the Following for Revenue to Be