The two criteria that need to be met in order revenue to be recognized are

Question

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Revenue can only be recognized when the work has been substantially completed, meaning that the product or service has been delivered, and cash collection is reasonably assured. Cash collection does not necessarily have to occur before revenue can be recognized. Option A and B do not require the work to be substantially completed, and option D requires cash collection to have occurred, which is not always necessary for revenue recognition.

The Two Criteria That Need to Be Met in Order