Bill and hold sales should never be booked as revenue before shipment occurs.

Name: Bill and hold sales should never be booked as revenue before shipment occurs.
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

Bill and hold arrangements can allow for revenue recognition before shipment if specific criteria are met, such as the buyer taking title and assuming risk of loss, the reason for the bill and hold arrangement being substantive, the product being ready for shipment, and the product being separately identified as belonging to the buyer.

Bill and Hold Sales Should Never Be Booked as Revenue