Explanation/Reference:
Explanation:
The extent of the revenue deferral, and the subsequent timing of revenue recognition, depends on the nature of the contingency:
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.
Incorrect Answers:
A: Time-based contingencies must expire before the contingency can be removed and revenue recognized.
B: Payment-based contingencies require payment before the contingency can be removed and revenue recognized.
References: https://docs.oracle.com/cd/E60665_01/financialscs_gs/FAIRP/ FAIRP1476595.htm#FAIRP605453