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:

Fibrocystic Disease

a condition commonly characterized by benign lumps within the breast tissue, often associated with pain and discomfort.

Menstruating

The process in which the female body sheds the lining of the uterus, resulting in bleeding through the vagina, typically occurring once every month.

Palpation

Method of physical examination whereby the fingers or hands of the examiner are applied to the patient's body to feel body parts underlying the skin.

Cherry Angiomas

Small, benign tumors consisting of blood vessels that appear as red dots on the skin.