Question

According to the SEC's SAB No. 101, which of the following is not necessary for revenue recognition?

a. The seller's price to the buyer is fixed.
b. Collectibility is reasonably assured.
c. The seller has determined that the buyer will take the discount.
d. Persuasive evidence of an arrangement exists.

Answer 1

According to the SEC's SAB No. 101, all of the options listed are necessary for revenue recognition. Hence, the correct answer is options (a), (b), (c) and (d).

Step-by-step explanation:

According to the SEC's SAB No. 101, all of the options listed are necessary for revenue recognition. In order to recognize revenue, the seller's price to the buyer should be fixed, collectibility should be reasonably assured, the seller should have determined that the buyer will take the discount, and persuasive evidence of an arrangement should exist.

Therefore, none of the options in the question are not necessary for revenue recognition.