A city transit authority issues 200,000 monthly passes at $80 each for sale at various retailers. Retailers act as consignees for these passes. Identify which revenue recognition criteria is not met at the point of sale, preventing the recognition of revenue at that time.
A)The entity has transferred to the buyer the significant risks and rewards of ownership of the goods.
B)It is probable that the economic benefits associated with the transaction will flow to the entity.
C)Stage of completion - either the coverage period has not yet begun or the period has not elapsed.
D)The amount of revenue can be measured reliably.

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The Answer of A city transit authority issues 200,000 monthly passes at $80 each for sale at various retailers. Retailers act as consignees for these passes. Identify which revenue recognition criteria is not met at the point of sale, preventing the recognition of revenue at that time.
A)The entity has transferred to the buyer the significant risks and rewards of ownership of the goods.
B)It is probable that the economic benefits associated with the transaction will flow to the entity.
C)Stage of completion - either the coverage period has not yet begun or the period has not elapsed.
D)The amount of revenue can be measured reliably.

A City Transit Authority Issues 200,000 Monthly Passes at $80