The FASB and the IASB Agreed That the Fundamental Characteristic

question 35

Multiple Choice

The FASB and the IASB agreed that the fundamental characteristic of revenue recognition is that

• A) the term revenue means different things to different companies in different countries.
• B) revenue should be recognized when it is earned.
• C) revenues are recognized and measured based on changes in assets and liabilities.
• D) the number of disclosures required for revenue recognition should be held to a minimum.

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Definitions:

Need-Payoff Question

A sales technique question that aims to make the customer articulate the benefits of solving a problem, emphasizing the value of the proposed solution.

SPIN Approach

A sales technique that involves asking Situation, Problem, Implication, and Need-payoff questions to better understand customer needs.

Bookstore Owner

An individual or entity that owns and operates a retail establishment selling books.

Direct Question

A straightforward inquiry that seeks a specific piece of information or a direct response from the person being asked.