The Following Is a Diagram of the Earnings Cycle as Presented

question 16

Multiple Choice

The following is a diagram of the earnings cycle as presented by Coombes and Martin (1982) . In the traditional historical-cost accounting model,at what point has revenue been recognised for long-term construction contracts in the building industry?

• A) Point 8
• B) Point 4
• C) Point 6
• D) Point 5

---

Definitions:

Environmental Stimuli

External factors or conditions that can elicit responses from an organism or influence its behavior.

Wear and Tear

The damage or deterioration caused by regular use or aging.

Circadian Rhythm

An innate process that governs the rhythm of sleep and wakefulness, repeating about every 24 hours.

Biorhythm

Theoretical cycles believed to affect various physical, emotional, and intellectual conditions in humans.