Which Revenue Recognition Criterion Is Not Satisfied When Goods Are

question 1

Multiple Choice

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.

---

Definitions:

Supreme Court

The apex judicial body in the country, having the final word on legal and constitutional disputes.

Inconsistent

Lacking compatibility or uniformity; actions or ideas that do not align or are contradictory.

Conditionally Protected Speech

Conditionally Protected Speech includes those forms of expression that are subject to certain limitations and conditions under the First Amendment, such as obscenity, defamation, and speech that incites imminent lawless action.

Supreme Court

The highest federal court in the United States, consisting of nine justices and having jurisdiction over all other courts in the nation.