The first step in the revenue framewok is determining whether a contract with a customer exists. A contract with a customer exists when the contract is legally enforceable and the following criterias are met.

A$)$ The contract has been approved by either parties $($written$/$oral$/$business practice$)$;

B$)$ Seller can identify the right of the buyer

C$)$ Seller can identify the payment terms for the goods or services to be transferred;

D$)$ The contract has commercial substance $($i$.$e$.$ risk, timing or future cash flows are expected to change as a result of the contract$)$; and

E$)$ It is probable that Seller will collect cash $($consideration$)$ from the customer.

$1)$ A$,$ B$,$ C$,$ D and E

$2)$ A$,$ B and C

$3)$ A$,$ C and E

$4)$ C$,$ D and E