Under IAS 18, Which of the Following Is an Example

question 10

Multiple Choice

Under IAS 18, which of the following is an example of retention of significant risks and rewards by the seller?

• A)The buyer has no right to rescind the purchase.
• B)The seller is under no obligation for satisfactory performance not covered by normal warranties.
• C)Goods are sold subject to installation, but installation is not a significant part of the contract and has not yet been completed.
• D)Receipt of revenue by the seller is contingent on the buyer generating revenue through its sale of the goods.

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Definitions:

Opening

Creating a gap or space, providing access or an entrance to something.

Center

Often used in various contexts to denote the middle point of something; in geometry, it refers to the point equidistant from all points on the circumference of a circle or surface of a sphere.

Visual Pigment

Light-sensitive molecules found in photoreceptor cells of the retina, essential for converting light into visual signals.

Color-Blind

A visual impairment where an individual has difficulty distinguishing between certain colors.