Under GAAP Rules, a Company Would Not Be Able to Recognize

Multiple Choice

Under GAAP rules, a company would not be able to recognize revenue at the time it delivered a product to the customer if

A) It was unable to estimate the likelihood of the product being returned.
B) It had not yet been paid, but felt it could estimate the likelihood of bad debts.
C) It had an obligation to fix the product if it broke, and felt it could estimate the likelihood of having to pay warranty costs.
D) It was being paid in installments.