IFRS for Revenue Recognition

question 41

Multiple Choice

IFRS for revenue recognition

• A) is enforced by an international enforcement body, the IASB, which is comparable to the U.S. SEC.
• B) bases revenue recognition on the concepts of "earned" and "realized or realizable."
• C) permits use of the completed-contract method when costs are difficult to estimate.
• D) contains limited industry-specific guidance.

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Definitions:

Qualifying

Identifying potential customers within the firm’s target market who have a desire for the product, the authority to purchase it, and the resources to pay for it.

Promotional Salesperson

An individual who focuses on creating immediate product interest, offering special deals or incentives as part of a short-term sales strategy.

Personal-Selling

A direct sales approach where salespeople interact face-to-face with potential buyers to promote and sell products or services.

Specialist

An individual or business highly skilled and knowledgeable in a specific area or field, offering expertise-based services or products.