Which of the following is not a condition that must be met for an item to be recorded as revenue?
A)Revenues must be earned.
B)The amount of the revenue must be measurable.
C)The revenue must be received in cash.
D)The costs of generating the revenue can be determined.

Question

Quizplus · Accepted Answer

The condition that revenue must be received in cash is not necessary for revenue recognition. Revenue can be recognized even if the payment is received at a later date or in the future. This is known as accrual accounting, which recognizes revenue when it is earned regardless of when the cash is received. The other conditions, such as earning the revenue, measurable amount, and determinable costs, are necessary for revenue recognition.

Which of the Following Is Not a Condition That Must