IASB (2011)requires an Entity to Recognise Revenue for a Performance

question 51

Multiple Choice

IASB (2011) requires an entity to recognise revenue for a performance obligation satisfied over time only if the entity can:

• A) reasonably measure with complete satisfaction the performance obligation.
• B) reasonably measure its expected revenue of the performance obligation.
• C) reasonably measure its expected costs of the performance obligation.
• D) reasonably measure its progress towards complete satisfaction of the performance obligation.

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Definitions:

Series

A sequence of numbers or terms that follow a specific pattern.

Outstanding Balance

Outstanding balance refers to the amount of money that is still owed on a loan or credit account at any given time.

Invoice

A document issued by a seller to a buyer that lists goods or services provided and the due payment.

Payment

The act of giving money or other compensation to settle a transaction.