Under the earnings approach for the sale of goods, which of the following would NOT be a reason to recognize revenue?
A)The risks and rewards are transferred to the buyer.
B)The vendor continues to have control over the goods sold.
C)Collectibility is reasonably assured.
D)Costs and revenues can be reliably measured.

Question

Quizplus · Accepted Answer

Under the earnings approach, revenue is recognized when the vendor no longer has control over the goods sold. If the vendor continues to have control, revenue should not be recognized.

Under the Earnings Approach for the Sale of Goods, Which