Revenue from the sale of goods should be recognized when certain criteria have been satisfied. The criteria include all of the following except:
A) risks and rewards of ownership have been transferred to the buyer.
B) the cash has been received.
C) the amount of the revenue can be reliably measured.
D) costs relating to the sale of goods can be reliably measured.

Question

Quizplus · Accepted Answer

Revenue recognition does not require that cash has been received; it requires that the risks and rewards of ownership have been transferred, and that revenue and costs can be reliably measured.

Revenue from the Sale of Goods Should Be Recognized When