Which Method of Revenue Recognition Do IFRS Require for Construction

question 68

Multiple Choice

Which method of revenue recognition do IFRS require for construction contracts when the percentage-of-completion method cannot be applied?

• A)completed contract
• B)installment sales
• C)completed contract.
• D)cost recovery

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Definitions:

Cash Discount

A reduction in the invoice price given by the seller to the buyer for quick payment within a specified period.

Merchandise

Products that a company buys to resell to its customers.

Cash Paid

The actual outflow of cash during a period for expenses, investments, and other financial activities.

Perpetual Inventory System

An inventory tracking system where updates are made continuously as transactions occur, providing real-time inventory levels.