An Entity Shall Recognise Revenue from a Contract When

question 20

Multiple Choice

An entity shall recognise revenue from a contract when:

• A) the entity has satisfied the performance obligation.
• B) the goods or service have been transferred to the customer.
• C) the customer obtains control of the goods or service.
• D) All of the given answers are necessary for recognition of revenue from a contract.

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Definitions:

Hypotheses

Proposed explanations made on the basis of limited evidence as a starting point for further investigation, often tested statistically.

Confounding Variables

External variables that can affect the outcome of an experiment, making it difficult to establish a clear cause-and-effect relationship.

Random Assignment

The assignment of participants to categories of an independent variable such that each participant has an equal chance of being assigned to each category.

Systematic Observation

An observational method that involves structured, consistent procedures for recording and analyzing phenomena.