Recording revenue from a sale even though the rights and risks of ownership have not yet passed to the purchaser is an example of what type of fictitious revenue scheme?
A) Partial sale
B) Circumstantial sale
C) Tentative sale
D) Sale with conditions

Question

Quizplus · Accepted Answer

This is an example of a "Sale with conditions" fictitious revenue scheme, where revenue is improperly recognized before the sale is finalized or before the product or service fully meets the criteria for revenue recognition, such as the transfer of risks and rewards of ownership.

Recording Revenue from a Sale Even Though the Rights and Risks