The Following Is a Diagram of the Earnings Cycle as Presented

question 34

Multiple Choice

The following is a diagram of the earnings cycle as presented by Coombes and Martin (1982) .
In the traditional historical-cost accounting model, at what point has revenue been recognised for long-term construction contracts in the building industry?

• A) Point 8.
• B) Point 4.
• C) Point 6.
• D) Point 5.
• E) None of the given answers.