The revenue principle requires four conditions to be met.Which of the following is one of the four conditions?
A)The customer has paid for the goods or services.
B)Delivery of goods or performance of service has occurred or is scheduled to occur.
C)The price is fixed or determinable.
D)The customer has signed a contract.

Question

Quizplus · Accepted Answer

The four conditions for revenue to be recognized according to the revenue principle are: 1) goods or services are delivered 2) there is persuasive evidence of an arrangement for customer payment 3) the price is fixed or determinable and 4) collection is reasonably assured.

The Revenue Principle Requires Four Conditions to Be Met