Which of the following is typically true for a bill-and-hold arrangement?
A) Revenue is recognized at the point in time when the arrangement is made.
B) Revenue is recognized at the point in time when goods are manufactured.
C) Revenue is recognized at the point in time when the delivery of goods is made.
D) Revenue is recognized at the point in time at which payment from the customer is received.

Question

Quizplus · Accepted Answer

Bill-and-hold arrangements normally do not qualify for revenue recognition until delivery is made to the customer. Prior to that point, control of goods is not viewed as having passed to the customer.

Which of the Following Is Typically True for a Bill-And-Hold