Under U.S.GAAP,what is a condition for revenue to be realized or realizable?
A)Cash or fixed claims to cash are received.
B)Contracts are written as per negotiations.
C)The company receives the right to bill with expectation of payment.
D)Both A & C

Question

Quizplus · Accepted Answer

Under U.S. GAAP, revenue can be recognized when either cash or claims to cash are received (Option A) or when the company receives the right to bill with the expectation of payment (Option C). Therefore, the correct answer is Option D, which includes both A and C. Option B, stating that contracts are written as per negotiations, is not a condition for revenue to be realized or realizable but rather a part of the process of recognizing revenue.

Under USGAAP,what Is a Condition for Revenue to Be Realized or or Realizable