In a normal sale, generally the most uncertain factor in the revenue recognition process is:
A) The seller's fulfillment of its responsibility in the transaction
B) The measurability of the resource or item received by the seller
C) The realizability of the resource or item received by the seller
D) The relevance of the resource or item received by the seller

Question

Quizplus · Accepted Answer

The realizability of the resource or item received by the seller is often the most uncertain factor in the revenue recognition process because it involves assessing whether the seller will actually be able to convert the received resources or items into cash or other benefits, which can be uncertain due to various factors such as market conditions, credit risk of the buyer, and enforceability of the transaction.

In a Normal Sale, Generally the Most Uncertain Factor in the Revenue