Disclosures Concerning Significant Judgments in Revenue Recognition Include All of the Following

question 121

Multiple Choice

Disclosures concerning significant judgments in revenue recognition include all of the following except ________.

• A) information regarding fair value of consideration exchanged
• B) methods used to recognize revenue
• C) allocation of the transaction price
• D) an assessment of whether an estimate of variable consideration is constrained

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Definitions:

Operating Revenue

Income earned from a company's core business operations, excluding revenue from other sources.

Inventory

Goods and materials that a business holds for the ultimate goal of resale, production, or utilization in rendering services.

Asset

An economic resource controlled by an entity that is expected to produce future benefits.

Revenues

The total amounts of money generated by a company from its normal business operations, before any expenses are subtracted.