Which of the following is not one of the criteria for revenue recognition? A)Collectibility is certain. B)Delivery has occurred or services have been rendered. C)Evidence of an arrangement exists and is persuasive. D)A fixed or determinable price to buyer exists.

Question

Quizplus · Accepted Answer

Although collectibility is an important factor in determining revenue recognition, it is not one of the criteria for revenue recognition as defined by generally accepted accounting principles (GAAP). The four criteria for revenue recognition are delivery or service has been rendered, evidence of an arrangement exists and is persuasive, a fixed or determinable price to buyer exists, and collectibility is probable.

Which of the Following Is not One of the Criteria