The earliest moment that the critical event and measurability are both satisfied for revenue recognition is usually
A)before the sale.
B)after the sale.
C)at the time of sale.
D)when payment is receiveD.

Question

Quizplus · Accepted Answer

The critical event for revenue recognition is the transfer of control of goods or services to the customer. Measurability requires that the amount of consideration being received for the goods or services can be reliably measured. Both of these conditions are usually satisfied at the time of sale, making choice C the correct answer. A, B, and D are not typically the earliest moments that these conditions are met.

The Earliest Moment That the Critical Event and Measurability Are