Exam 1z0-1056-23 topic 1 question 4 discussion

B & C The extent of the revenue deferral, and the subsequent timing of revenue recognition, depends on the nature of the contingency: Time-based contingencies must expire before the contingency can be removed and revenue recognized. Payment-based contingencies require payment before the contingency can be removed and revenue recognized. Post-billing customer acceptance clauses must expire (implicit acceptance), or be manually accepted (explicit acceptance), before the contingency can be removed and revenue recognized. Pre-billing customer acceptance clauses require the recording of customer acceptance in the feeder system, or its expiration, before importing into Receivables for invoicing. Customer acceptance or its expiration must occur before the contingency can be removed, and the order can be imported into Receivables for invoicing.

https://docs.oracle.com/cd/E25178_01/fusionapps.1111/e20375/F569969AN68D1D.htm

B & C https://docs.oracle.com/cd/E25178_01/fusionapps.1111/e20375/F569969AN68D1D.htm

Should be A and C The correct statements are: A. Payment-based contingencies do not always require payment before the contingency can be removed and revenue recognized. Explanation: Payment-based contingencies may involve conditions other than actual payment before recognizing revenue. C. Pre-billing customer acceptance clauses require the recording of customer acceptance in the feeder system, or its expiration, before importing into Receivables for invoicing. Customer acceptance or its expiration must occur before the contingency can be removed and the order can be imported into Receivables for invoicing. Explanation: For pre-billing customer acceptance clauses, customer acceptance or expiration needs to happen before the contingency is removed and the order is imported into Receivables for invoicing. Therefore, options A and C are true.