According to the SEC's SAB No. 101, which of the following is not necessary for revenue recognition?
A) The seller's price to the buyer is fixed.
B) Collectibility is reasonably assured.
C) The seller has determined that the buyer will take the discount.
D) Persuasive evidence of an arrangement exists.

Question

Quizplus · Accepted Answer

SAB No. 101 lists four criteria necessary for revenue recognition: 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 determination of whether a buyer will take a discount is not one of the four criteria.