An apartment owner receives a deposit of $1200 equal to one month's rent. 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 An apartment owner receives a deposit of $1200 equal to one month's rent. 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.

An Apartment Owner Receives a Deposit of $1200 Equal to One