What Is True About Both IFRS and U

question 45

Multiple Choice

What is true about both IFRS and U.S.GAAP with respect to service contracts?

• A)IFRS and U.S.GAAP both allow the use of the percentage-of-completion method.
• B)Neither IFRS, nor U.S.GAAP allows the use of the percentage-of-completion method.
• C)IFRS allows the use of the percentage-of-completion method while U.S.GAAP does not.
• D)U.S.GAAP allows the use of the percentage-of-completion method while IFRS does not.

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Definitions:

Total Revenue

The overall income generated by a business from selling its goods or services before any costs are deducted.

Value of the Marginal Product

The additional revenue generated by employing one more unit of input, such as labor or capital.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Total Revenue

The total income received by a firm from selling its goods or services before any costs or expenses are deducted.