Edwards Equipment entered into a contract with Peterson Printing to manufacture and install one full-color printing press. Peterson submits progress payments upon completion of each stage of the contract. If the contract is terminated prior to completion, Edwards maintains ownership of all work in progress and may dispose of it or sell it in whatever way it sees fit. Given this scenario, which of the following statements is accurate?

This contract meets the criteria for recognizing revenue over time because Edwards does not have an enforceable right to payment.

This contract does not meet the criteria for recognizing revenue over time because Edwards does not have an enforceable right to payment.

This contract meets the criteria for recognizing revenue over time because Edwards has an alternative use for the press if the contract is terminated.

This contract does not meet the criteria for recognizing revenue over time because Edwards has an alternative use for the press if the contract is terminated.

Answer rating: 100% (QA)

This contract meets the criteria for recognizing revenue over time be... View the full answer