Which of the Following Is Not a Major Condition for Revenue

question 59

Multiple Choice

Which of the following is not a major condition for revenue recognition under IFRS?

• A) Persuasive evidence of an arrangement.
• B) Risks and rewards have transferred to the buyer.
• C) Revenues and costs can be reliably measured.
• D) Probable that economic benefits will flow to the seller.

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Definitions:

Paid-in Capital

Funds received from investors during the issuance of stock, exceeding the par or stated value of the shares, also known as "contributed capital."

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders, often equivalent to the par value of the shares.

SEC

Stands for the Securities and Exchange Commission, a U.S. government agency that oversees and enforces federal securities laws to protect investors and ensure market integrity.

Dividends

Distributions of earnings allocated by a company to its shareholders, often in the form of cash payments or additional shares.