All of the following are conditions for revenue recognition outlined by SAB 104 except:
A) There is pervasive evidence that an arrangement exists.
B) Delivery has occurred or services have been performed.
C) The seller's price to the buyer can be variable.
D) Collectability is reasonably assured.

Question

Quizplus · Accepted Answer

SAB 104 outlines four conditions for revenue recognition: 1) there is persuasive evidence of an arrangement, 2) delivery has occurred or services have been rendered, 3) the seller's price to the buyer is fixed or determinable, and 4) collectability is reasonably assured. The variable nature of the seller's price to the buyer is not an exception to revenue recognition under SAB 104.

All of the Following Are Conditions for Revenue Recognition Outlined