New Terminology Introduced Under the Joint IFRS- US GAAP Customer

question 13

Multiple Choice

New terminology introduced under the joint IFRS- US GAAP Customer Consideration (Allocation) Model includes all of the following EXCEPT:

• A) revenue recognition voids.
• B) contract rights.
• C) net contract asset/ liability.
• D) performance obligations.

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Definitions:

Receivables Factoring

The process of selling a business's accounts receivable to a third party at a discount to quickly generate cash.

Bad Debts

Financial amounts owed to a company that are unlikely to be paid by debtors, often recognized as an expense on the company's income statement.

Discounted Amount

The present value of a future sum of money or stream of cash flows given a specific rate, reflecting the time value of money.

Shortage Costs

Shortage Costs are the costs incurred when demand exceeds supply, including lost sales, backorder costs, and potential deterioration of customer satisfaction.