Which of the Following Statements Is Correct About the Revenue

question 58

Multiple Choice

Which of the following statements is correct about the revenue recognition criteria for a performance obligation satisfied over time?

• A)The outcome of the performance obligation must be reasonably estimable before the percentage of completion method can be used to record revenue.
• B)The selling entity creates an asset that the selling asset controls..
• C)The selling entity creates an asset with an alternative use to the selling entity
• D)The selling entity does not have an enforceable right to payment for the performance completed to date.