Under ASC 606, revenue from a software license should be recognized when

Under ASC 606, revenue from a software license should be recognized when

Under ASC 606, revenue from a software license should be recognized when:

A. The customer pays the license fee

B. The software is installed on the customer's server

C. The customer obtains control of the software

D. The software is fully tested by the customer

Answer: C

Explanation: ASC 606-10-25-1 requires revenue recognition when the customer obtains control (i.e., has the ability to direct use and obtain benefits). Payment timing or installation status is irrelevant.