Which of the Following Best Illustrates the Sales Revenue Model

question 65

Multiple Choice

Which of the following best illustrates the sales revenue model?

• A)eBay receives a small fee from a seller if a seller is successful in selling an item.
• B)Epinions receives a fee after steering a customer to a participating Web site where he or she makes a purchase.
• C)Flickr provides basic services for free,but charges a premium for advanced services.
• D)Apple accepts micropayments for single music track downloads.
• E)Netflix charges customers a monthly fee for access to its library of movies.

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Definitions:

Materiality

The notion of materiality guides the margin of error acceptable, the degree of precision required, and the extent of the disclosure required when preparing general purpose financial statements.

Disclosure Provisions

Legal requirements or policies that necessitate the revelation of certain information to stakeholders or the public, ensuring transparency.

Accounting Standards

Rules and guidelines set by governing bodies that dictate how financial statements should be prepared and presented.

Direct Method

A cash flow statement preparation approach that involves reporting major classes of gross cash receipts and payments.