Question

When the goods are sold subject to approval by the buyer, revenue should be recognized when _________________________.

• A. The goods have been formally accepted by the buyer
• B. The buyer has done an act adopting the transaction
• C. The time period for rejection has elapsed
• D. All of the above

Answer 1

The correct option is D All of the above

When the goods are sold subject to approval by the buyer, revenue should be recognized when:

1. The goods have been formally accepted by the buyer;

2. The buyer has done an act adopting the transaction;

3. The time period for rejection has elapsed.

Hence, D is the correct option.