When goods are sold, revenue may still be recognized if there is an insignificant degree of continuing managerial involvement in some instances.

Question

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According to the revenue recognition principle, revenue may be recognized when control of goods or services has been transferred to the customer. In some instances, even if there is an insignificant degree of continuing managerial involvement, control may still be deemed to have been transferred, and revenue can be recognized.

When Goods Are Sold, Revenue May Still Be Recognized If