Why Did the FASB Issue Accounting Standards Update No

question 48

Multiple Choice

Why did the FASB issue Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers?"

• A) To bring consistency to the recognition of revenue.
• B) To prohibit the use of bad debt expense.
• C) To allow a wide array of revenue recognition methods based on industry preferences.
• D) To encourage entities to be more forgiving of bad debt.
• E) To give entities more flexibility in how and when they recognize revenue.

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Definitions:

Generational Differences

Differences in values, behaviors, attitudes, and motivations between individuals from different generational groups.

Diversity Competency

The ability to interact effectively with people of different backgrounds, cultures, and perspectives.

Managing Across Generations

The practice of leading, motivating, and creating synergy among employees from diverse age groups, acknowledging their different values, work habits, and motivations.

Gen Y'ers

Also known as Millennials, refers to the generation of people born approximately between 1981 and 1996, known for their familiarity with digital technology.