Question

Companies recognize revenue only when: Multiple Choice A contract is reasonably likely to exist. A performance obligation is designated in a written contract. A written contract is in place and payment is variable. Control over goods or services has been transferred from the seller to the customer.

Answer 1

Answer: Control over goods or services has been transferred from the seller to the customer.

Explanation:- Companies recognize revenue only when control over goods or services has been transferred from the seller to the customer. Revenue can only be said to be recognized by organizations when goods or services have been moved from the producers to the sellers.