TRUE OR FALSE (shows references are required) 1. Companies recognize revenue when goods or services are transferred to customers for the 2. Companies always recognize revenue when goods or services are transferred to 3. Staff Accounting Bulletin No. 101 was issued by the FASB to clarify its guidelines on amount the company expects to be entitled to receive in exchange for those goods or services customers for the amount the company expects to receive in exchange for those goods or services. revenue recognition. "Determine whether it is probable the seller will collect the consideration it is entitled to receive" is one of the five steps to applying the core revenue recognition principle. 4. SELECT THE BEST ANSWER (Shows references are required) Companies recognize revenue only when: A) A contract is reasonably likely to exist. B) A performance obligation is designated in a written contract. C) A written contract is in place and payment is variable. D) Control over goods or services has been transferred from the seller to the customer. 5