Asked by Madeline Winterton on May 27, 2024
Verified
The SEC specifies four criteria for revenue recognition and allows recognition of revenue when
A) all the criteria are met.
B) 3 out of 4 criteria are met.
C) 2 out of 4 criteria are met.
D) only one criterion is met.
SEC
The U.S. Securities and Exchange Commission, a federal agency that regulates the securities markets and protects investors.
Revenue Recognition Criteria
The set of guidelines that determines the specific conditions under which revenue is recognized in the accounting period.
- Understand the guidelines for revenue recognition under U.S. GAAP and IFRS.
Verified Answer
KG
Khari GreeneMay 30, 2024
Final Answer :
A
Explanation :
The SEC specifies four criteria for revenue recognition and all four must be met before revenue can be recognized. Therefore, only choice A (all criteria being met) is the correct answer.
Learning Objectives
- Understand the guidelines for revenue recognition under U.S. GAAP and IFRS.
Related questions
Using the Market Price (Production)method,how Much Net Income Should Sarver ...
Continuing Franchise Fees Should Be Recorded by the Franchisor ...
In the Case of Sales with Delayed Delivery ...
All of the Following Are Criteria for Revenue Recognition Under ...
The Earliest Moment That the Critical Event and Measurability Are ...