The Once-Revised Exposure Draft on Revenue Recognition Issued by the IASB

question 75

Multiple Choice

The once-revised exposure draft on revenue recognition issued by the IASB and the FASB

• A)addresses when and how much revenue should be recognized in contracts to provide both goods and services to customers.
• B)proposes to eliminate alternate methods of revenue recognition such as the percentage-of-completion and installment sales methods.
• C)will require companies to recognize a net liability contract position on all new contracts;revenue will then arise from increases in the net contract position over the life of the contract.
• D)All of these are correct regarding the FASB/IASB exposure document.

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Definitions:

Hyundai Motor America

The American subsidiary of Hyundai Motor Company, responsible for the sales, marketing, and service of Hyundai vehicles in the United States.

Customer Data

Information about consumers that businesses collect, analyze, and use to understand their preferences, behaviors, and demographics for improved service and marketing strategies.

Hyundai Owners

Individuals or entities that own vehicles manufactured by Hyundai, a South Korea-based automotive company.

Differentiation Focus Strategy

A business approach aiming to target a particular market segment by offering unique features that stand out from competitors.