Generally, under ASPE, revenue from sales should be recognized at a point when
A) management decides it is appropriate to do so.
B) the product is available for sale.
C) an exchange has taken place and the earnings process is substantially complete.
D) the entire amount receivable has been collected from the customer and there remains no further warranty liability.

Question

Quizplus · Accepted Answer

Revenue from sales should be recognized when an exchange has taken place and the earnings process is substantially complete. This means that the seller has delivered the goods or services to the buyer, and the buyer has assumed the risks and rewards of ownership. The amount of revenue recognized should also be reliable and measurable. Management's decision, product availability, or collection of receivables are not relevant criteria for recognizing revenue under ASPE.

Generally, Under ASPE, Revenue from Sales Should Be Recognized at a Point