Before Product / Service Delivery According to Accounting Bulletin (SAB) 101, the following criteria must be satisfied before revenue can be recognized by a business: Persuasive evidence of a sales arrangement must exist; Delivery of the product or service must occur; The seller’s price to the buyer is fixed or determinable; and Collectability of any unpaid cash is reasonably assured. To help you understand this revenue recognition principle, the following figure depicts six possible points in time when revenue might be recognized by a business enterprise. From left to right, the risk of recognizing revenue with error is decreasing.				At Product/Service Delivery	After Delivery
Before Production	During Production	Production Complete	Receive Customers’ Order	Point of Sale	Cash Collection
		Please list any possible risks in terms of violating the above mentioned four criteria in each of the six points if revenue is recognized at.

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solution During production If revenue is recognised during production than the prudency concept of a... View the full answer