Which of the Following Would NOT Normally Be Considered as a Problem

question 346

Multiple Choice

Which of the following would NOT normally be considered as a problem associated with the earnings approach to revenue recognition?

• A)This approach may be subject to a considerable degree of subjective judgement.
• B)the existence of multiple and sometimes conflicting guidelines
• C)the difficulties arising from the split of risks and rewards between buyer and seller
• D)Revenue can be reliably measured and collectability is probable.

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Definitions:

Monthly Payment

The amount paid each month on a loan, mortgage, or other debt obligation.

APR

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, accounting for fees and compound interest.

APR Discount Rate

The annual percentage rate that represents the actual yearly cost of funds over the term of a loan, including any fees or additional costs associated with the transaction.

Monthly Payments

Regular payments made over a specified period of time towards the settlement of a debt obligation, typically calculated on an amortization schedule.