Revenue from a contract with a customer
A)is recognized when the customer receive the rights to receive consideration.
B)is recognized even if the contract is still wholly unperformed.
C)can be recognized even when a contract is still pending.
D)cannot be recognized until a contract exists.

Question

Quizplus · Accepted Answer

Revenue cannot be recognized until a contract exists, as per the revenue recognition principle, which requires a contract to be in place to ensure that the terms are enforceable and the rights and obligations are clear.

Revenue from a Contract with a Customer