To recognize revenue after the time of sale,there must be extreme uncertainty regarding the amount of cash to be collected or

Question

Quizplus · Accepted Answer

When there is extreme uncertainty regarding the amount of cash to be collected, revenue recognition must be deferred until the uncertainty is resolved. This typically occurs when there are substantial future services required whose costs cannot be reasonably estimated. In this case, revenue recognition must be delayed until the future services are performed and their costs can be accurately determined.

To Recognize Revenue After the Time of Sale,there Must Be