Which of the Following Is Not a Step in Recognising

question 6

Multiple Choice

Which of the following is not a step in recognising revenue according to IASB (2011) ?

• A) Identify the contract with a customer.
• B) Determine the transaction price.
• C) Recognise revenue before title of the assets transfers to the customer.
• D) Identify the separate performance obligations in a contract.

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Definitions:

Marginal Cost

The additional expenditure required to produce one more unit of a product or service.

Profit-Maximizing

The strategy or practice of adjusting production and distribution to achieve the highest possible profit from operations.

Marginal Revenue Function

A calculation that shows how much extra revenue a firm will receive from selling one more unit of a product or service.

Demand

Describes the amount of a product or service that buyers are ready and can afford to buy at different prices over a specific time frame.