Which of the Following Is Not One of the Revenue

question 45

Multiple Choice

Which of the following is not one of the revenue recognition methods used in the situation where a company makes a single sale, and has agreed to receive payments in installments over time?

• A) Percentage of completion
• B) Cost recovery
• C) Installment
• D) Immediate recognition

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Definitions:

Governmental Order

A directive issued by a government authority, which can include regulations, directives, decisions, laws, or administrative acts.

Health Hazard

A condition or material that poses a risk of causing injury, illness, or death to individuals.

Useful Life

The estimated period over which an asset is expected to be functional and economically useful.

Commercial Substance

Involves a situation where the future cash flows of a business are expected to change significantly as a result of a transaction.