Question
What is the two-pronged test for revenue recognition under current U.S. GAAP? A. The two-pronged test for revenue recognition is: (1) the goods or services
What is the two-pronged test for revenue recognition under current U.S. GAAP?
A. The two-pronged test for revenue recognition is: (1) the goods or services must be delivered to the customer-that is, the company has received payment for the goods or services, and (2) the company must have received cash or an asset virtually assured of being converted into cash-that is, the revenue must be realized or realizable.
B. The two-pronged test for revenue recognition is: (1) the goods or services must be delivered to the customer-that is, the company has earned the revenue, and (2) the company must have received cash or an asset virtually assured of being converted into cash-that is, the revenue must be realized or realizable.
C. The two-pronged test for revenue recognition is: (1) the goods or services must be delivered to the customer-that is, the company has earned the revenue, and (2) the company must have received cash or an asset virtually assured of being converted into cash-that is, the revenue be recorded in accounts receivable.
D. None of the above.
I need the amswer today before 9 pm please
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started