When Following ASPE,all of the Following Criteria Must Be Satisfied

question 38

Multiple Choice

When following ASPE,all of the following criteria must be satisfied in order to recognize revenue for the provision of services,under the earnings based approach,except

• A)the service has been performed.
• B)the amount of consideration to be received can be measured with reasonably assurance.
• C)the seller has no continuing involvement.
• D)collection is reasonably assured.

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Definitions:

Perpetual Inventory System

This is an accounting method that continuously updates inventory records for each sale or purchase of inventory.

Allowance for Doubtful Accounts

A contra-account that reduces the total receivables reported on the balance sheet to reflect the amount expected to be collected.

Perpetual Inventory System

The perpetual inventory system continuously updates inventory records for each purchase and sale transaction, providing real-time inventory levels.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including a balance sheet, income statement, and cash flow statement.