Question: A contract does not qualify for revenue recognition if either party can unilaterally cancel the contract before performance without compensating the other party. the contract

A contract doesnotqualify for revenue recognition if

  1. either party can unilaterally cancel the contract before performance without compensating the other party.
  2. the contract is wholly unperformed.
  3. contract terms allow cancellation without penalty by either party at any time prior to delivery of the goods.
  4. any one of these choices apply.

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