The Statement Regarding Recognition Versus Realisation of Revenue That Is

question 12

Multiple Choice

The statement regarding recognition versus realisation of revenue that is true is:

• A)For an asset to be "realised' there must be an inflow of assets or a measurable change in the value of an asset
• B)'Recognition of revenue' means an inflow of liquid assets
• C)'Realisable' means the asset received is readily convertible to known amounts of cash
• D)All of the above are true

---

Definitions:

Spreadsheet

A digital tool that allows for the arrangement of data in rows and columns to facilitate calculation, analysis, and storage of information.

Labor Intensive

Describes a process or industry that requires a large amount of human labor to produce its goods or services.

Machine Intensive

Describes a production process or industry that relies heavily on machinery and equipment for manufacturing goods, typically resulting in higher fixed costs.

Predetermined Overhead Rates

Predetermined overhead rates involve estimating indirect manufacturing costs and applying them to specific jobs or departments based on a consistent allocation base, facilitating more accurate product costing.