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Which of the following would not be considered a revenue recognition abuse? Multiple Choice Recording goods on layaway...

Which of the following would not be considered a revenue recognition abuse?

Multiple Choice

  • Recording goods on layaway for a customer as a final sale.

  • Recording revenue on a large shipment to a customer whose ability to pay is not reasonably assured.

  • Recording goods on consignment as part of inventory when there is a right of return.

  • Recording revenue on goods ready for delivery to the customers, segregated in the company warehouse without a bill-and-hold arrangement in the contract.

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Ans Recording goods on consignment as part of inventory when there is a right of return.

Which of the following would not be considered a revenue recognition abuse recording goods on consignment as part of inventory when there is a right of return.

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