According to the SEC's SAB No.101,which of the following is not necessary for revenue recognition?
A) The seller's price to the buyer is fixed.
B) Collectability is reasonably assured.
C) The seller has determined that the buyer will take the discount.
D) Persuasive evidence of an arrangement exists.

Question

Quizplus · Accepted Answer

According to SEC's SAB No. 101, the seller's price to the buyer should be fixed or determinable, collectability should be reasonably assured, persuasive evidence of an arrangement should exist. However, the seller determining that the buyer will take the discount is not necessary for revenue recognition.