Which revenue recognition criterion is not satisfied when goods are sold on an installment basis?
A)Transfer of risks and rewards of ownership.
B)Transfer of control over the goods sold.
C)Costs incurred or to be incurred can be reliably measured.
D)Probability that economic benefits will flow to the entity.

Question

Quizplus · Accepted Answer

When goods are sold on an installment basis, there is uncertainty about the probability that economic benefits will flow to the entity, as the full payment is not received upfront.

Which Revenue Recognition Criterion Is Not Satisfied When Goods Are