Revenue Recognition Conditions: CFA® Level 1 Exam | Test Prep

Conditions for Recognizing Revenue

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Question

Each of the following are conditions that must be met if revenue is going to be recognized at the time of sale except

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Explanations

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A. B. C. D.

B

Revenue can be recognized at the time of sale as long as the product returns are reasonably estimated as well as several other conditions existing. There is no definitive number of days that make the recognition possible.