Which of the Following Statements Is True Regarding the Reporting

question 97

Multiple Choice

Which of the following statements is true regarding the reporting of revenues in an interim report?

• A) Revenues should be recognized on the income tax basis for interim reporting.
• B) Revenues should be recognized in interim periods in the same way as they are on an annual basis.
• C) Projected losses on long-term contracts should be deferred to the annual report.
• D) The percentage-of-completion method of reporting long-term construction projects is not an acceptable method for interim reporting.
• E) Revenues should be recognized on the cash basis of accounting for interim reporting.

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Definitions:

Productivity

A measure of the efficiency of production, often quantified as the ratio of output to input in the production process.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.

Resource

Assets, materials, or valuable items that are available to be used to produce goods or services.

Derived Demand

The demand for a good or service resulting from the demand for another good or service, as seen in the demand for raw materials driven by the production of final goods.