As a Result of the Revenue Recognition Project by the FASB

question 118

Multiple Choice

As a result of the revenue recognition project by the FASB and IASB:

• A) revenue is no longer recorded unless cash has been received.
• B) revenue recognition places more emphasis on when changes occur in related expenses.
• C) revenue recognition places more emphasis on when revenue is realized.
• D) revenue recognition places more emphasis on when the performance obligation is satisfied.

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Definitions:

Price Change

An alteration in the cost of goods and services in the market, which can be due to various factors like inflation, supply and demand changes, or external economic conditions.

Normal Good

A type of good for which demand increases when income increases and falls when income decreases, assuming all other factors remain constant.

Park Visits

The act of visiting a park for recreational, leisure, or sports activities, reflecting an individual's preference or demand for outdoor spaces.

Substitution Effect

The economic principle describing how changes in relative prices can influence the choice between goods or services, holding the overall satisfaction level constant.