Financial Reporting and Analysis Q72
0. Which of the following is least likely correct regarding revenue recognition principles?
- A
Revenue can only be recognized when cash is received.
- B
Under U.S. GAAP, the price needs to be either determined or determinable for revenue to be recognized.
- C
The IFRS criteria for recognizing royalties is that it is probable that the economic benefits associated with the transaction will flow to the entity and the amount of revenue can be reliably measured.
