What Is the Problem with the Critical-Event Approach to Revenue

question 50

Multiple Choice

What is the problem with the critical-event approach to revenue recognition?

• A)It ignores the continuous nature of the revenue-earnings process.
• B)It requires the company to determine how much revenue should be recognized at each stage.
• C)It requires the firm to have collected all the money before revenue is recognized.
• D)It ignores the need to estimate the expenses on an on-going basis.

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