Which of the following is NOT a scenario under which a company may recognize revenue over a period in time?
A) The customer receives and consumes the benefits as the seller performs.
B) The company's earnings would be more consistent under this approach.
C) The customer controls the asset as it is created or enhanced.
D) The company does not have an alternative use for the asset created or enhanced.

Question

Quizplus · Accepted Answer

Revenue recognition over time is based on specific criteria outlined in accounting standards, such as when the customer consumes the benefits as the seller performs (A), the customer controls the asset as it is created or enhanced (C), or the company does not have an alternative use for the asset (D). The choice to recognize revenue over time for the purpose of achieving more consistent earnings (B) does not align with these criteria and is not a valid reason under accounting standards for recognizing revenue over time.

Which of the Following Is NOT a Scenario Under Which