Noncash consideration should be recognized by the seller on the basis of
A) original cost paid by customer.
B) fair value of what is received from the customer.
C) fair value of what is given up to the customer.
D) fair value of equivalent goods or services.

Question

Quizplus · Accepted Answer

Noncash consideration should be recognized by the seller based on the fair value of what is received from the customer. This approach ensures that the transaction is recorded at a value that reflects the current market conditions and the true economic benefit to the seller.

Noncash Consideration Should Be Recognized by the Seller on the Basis