Which of the following best describes the condition(s)that must be present for the recognition of revenue?
A) The revenue must be earned,measurable,and collected.
B) The revenue must be earned and collectible.
C) The revenue must be earned,measurable,and collectible.
D) The revenue must be measurable and collectible.

Question

Quizplus · Accepted Answer

Revenue recognition requires that the revenue must be earned, measurable, and collectible. "Earned" means that the seller has substantially completed the delivery of goods or services to the buyer, "measurable" means that the amount of revenue can be reliably determined, and "collectible" means that it is likely to be collected from the buyer. Therefore, option C is the most appropriate choice. Option A is incorrect as it leaves out "earned", which is an essential criterion for revenue recognition. Option B is also incorrect as it misses the "measurable" criterion. Option D misses out on the "earned" criterion.

Which of the Following Best Describes the Condition(s)that Must Be