When revenue is earned from the sale of goods, all of the following criteria must be met before revenue can be recognized EXCEPT
A) revenue must be earned.
B) the amount earned is measurable.
C) all sales returns and allowances have been recorded.
D) there is no continuing involvement or control over the goods.

Question

Quizplus · Accepted Answer

Sales returns and allowances do not need to be recorded before revenue is recognized; they are typically accounted for after the sale as they occur.

When Revenue Is Earned from the Sale of Goods, All