Which of the following statements about the revenue recognition criteria is not correct?
A)Ownership and control are applicable for the provision of services.
B)Revenue recognition criteria are the same for both sale of goods and provision of services.
C)Stage of completion should be reliably estimable in order to use the percentage of completion method.
D)Percentage of completion is an acceptable method of revenue recognition.

Question

Quizplus · Accepted Answer

Revenue recognition criteria are not the same for both sale of goods and provision of services. There are specific criteria for each. For example, for the sale of goods criteria includes transfer of risks and rewards of ownership, while for provision of services criteria includes stage of completion and degree of control.

Which of the Following Statements About the Revenue Recognition Criteria