Which of the Following Is Not One of the Conditions

question 12

Multiple Choice

Which of the following is not one of the conditions in AASB 118 when revenue from the sale of goods should be recognised?

• A)the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold
• B)it is probable that the economic benefits associated with the transaction will flow to the entity
• C)it is possible that the economic benefits associated with the transaction will flow to the entity
• D)the entity has transferred to the buyer the significant risks and rewards of ownership of the goods

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Definitions:

Chicago Board

Typically signifies the Chicago Board of Trade (CBOT) or Chicago Board Options Exchange (CBOE), prominent platforms for trading commodities and options respectively.

Economic System

Represents the method employed by societies to allocate resources, produce goods and services, and distribute them amongst its members.

Allocated Efficiently

refers to the optimal distribution of resources so that it maximizes the net benefit received from their use.

Soviet Union

A former federal socialist state in Northern Eurasia that existed from 1922 to 1991, composed of multiple Soviet republics.