Chapter 3, Problem 2EA

Four conditions must be met before revenue should be recognized. In each of the following cases, tell which condition has not been met:

1. a. Company Alpha accepts a contract to perform services in the future for $4,000.
2. b. Company Beta ships products worth $6,000 to another company without an order from the other company but tells the company it can return the products if it does not sell them.
3. c. Company Centric performs $20,000 of services for a firm with financial problems.
4. d. Company Radiant agrees to work out a price later for services that it performs for another company.