At What Point Would You Expect Revenue from Sales of Building

question 23

Multiple Choice

At what point would you expect revenue from sales of building materials to be recognised?

• A) During production
• B) On completion of production
• C) At point of sale or delivery
• D) When cash is received

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Definitions:

Shares

Stakeholding units in a business or financial asset that entitle owners to a fair portion of distributed profits, or dividends.

Market-To-Book Ratio

A financial ratio that compares a company's market value to its book value, indicating how much investors are willing to pay above the net asset value.

Price-Earnings Ratio

A valuation metric for a company, calculated as market value per share divided by earnings per share.

Book Value

The net value of a company's assets, subtracting the total liabilities from the total assets, often used to assess a company's financial health.