If a company has an agreement to deliver software that does not require significant production, modification, or customization, it recognizes revenue when persuasive evidence of an agreement exists and
A) delivery has occurred
B) the seller's fee is fixed or determinable
C) collectibility is probable
D) All of these choices

Question

Quizplus · Accepted Answer

All of these choices are necessary for revenue recognition in this scenario. Persuasive evidence of an agreement must exist, delivery must have occurred, the seller's fee must be fixed or determinable, and collectibility must be probable in order to recognize revenue.

If a Company Has an Agreement to Deliver Software That