Red Company Created Advertising Copy for a Client

question 35

Multiple Choice

Red Company created advertising copy for a client.Which of the following does not indicate that the transaction meets the SEC's four criteria for revenue recognition?

• A)The company and the customer agree that the customer owes for the service.
• B)Both parties understand the price.
• C)The goods or services have been used to produce revenue.
• D)There is a reasonable expectation that the customer will pay the bill.