Companies recognize revenue only when:
A) A contract is reasonably likely to exist.
B) A performance obligation is designated in a written contract.
C) A written contract is in place and payment is variable.
D) Control over goods or services has been transferred from the seller to the customer.

Question

Quizplus · Accepted Answer

The key to revenue recognition is transfer of control of goods or services from the seller to the customer.

Companies Recognize Revenue Only When