Which of the following is a criterion that must be met to recognize revenue from the sale of goods?

a. The receipt of consideration to which the entity is entitled under the contract must be probable.

b. The goods must have been delivered into the customer's physical possession.

c. All of the contract's performance obligations must have been satisfied.

d. It is highly probable that the buyer will pay the consideration promptly.

Question

Alena Cunningham

Social Studies

19 November, 08:36

Which of the following is a criterion that must be met to recognize revenue from the sale of goods?

a. The receipt of consideration to which the entity is entitled under the contract must be probable.

b. The goods must have been delivered into the customer's physical possession.

c. All of the contract's performance obligations must have been satisfied.

d. It is highly probable that the buyer will pay the consideration promptly.

+1

Answers (1)

Know the Answer?

Nathanial Patrick · Answer 1

The correct answer is letter A.

Explanation: The revenues are recognized when they are realized and are earned.

When the purchase is made and the receipt for the purchase is received, this characterizes the receipt, proof of purchase, regardless of the purchase price. If evidences of the arrangement exist.

If the delivery has occurred.

All that means the revenue.