Which of the following is not true concerning requirements of when a company should recognize revenue?
A)When delivery has occurred or services have been provided (rendered).
B)When the price is fixed or determinable.
C)When there is persuasive evidence of an arrangement for customer payment and collection is reasonably assured.
D)When cash has been received for services rendered.

Question

Quizplus · Accepted Answer

The statement "When cash has been received for services rendered" is not true. Revenue should be recognized when delivery has occurred or services have been provided, when the price is fixed or determinable, and when there is persuasive evidence of an arrangement for customer payment and collection is reasonably assured. However, receipt of cash is not a requirement for revenue recognition.

Which of the Following Is Not True Concerning Requirements of When