Which of the Following Statements Is Correct About the Revenue

question 58

Multiple Choice

Which of the following statements is correct about the revenue recognition criteria for a performance obligation satisfied over time?

• A)The outcome of the performance obligation must be reasonably estimable before the percentage of completion method can be used to record revenue.
• B)The selling entity creates an asset that the selling asset controls..
• C)The selling entity creates an asset with an alternative use to the selling entity
• D)The selling entity does not have an enforceable right to payment for the performance completed to date.

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Definitions:

Standard Normal

A normal distribution with a mean of zero and a standard deviation of one, commonly used in statistical analyses.

Mean

The arithmetic average of a set of values or measurements, calculated by summing them all up and dividing by the number of values.

Standard Deviation

A statistic that measures the dispersion or variability of a set of data points relative to its mean.

Normal Distribution

A bell-shaped frequency distribution curve where most of the occurrences take place near the mean and fewer and fewer occur as one moves away from the mean.