Explain Why Standards Are So Important in Information Technology

question 61

Essay

Explain why standards are so important in information technology.What standards have been important for the growth of Internet technologies?

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Definitions:

Revenue Recognition

This is an accounting principle that outlines the specific conditions under which revenue is recognized and determines how it is reported on the financial statements.

Completed Contract

An accounting method that recognizes revenue and expenses only when a contract is completed, not progressively over the life of the project.

Installment Method

An accounting method that recognizes revenue and expenses only when payments are actually received or made, typically used in sales with extended payment plans.

Deferred Gross Profit

The portion of gross profit that is earned but not yet recognized, often in installment sales.