Revenue Recognition Under AASB 18 Requires That

question 56

Multiple Choice

Revenue recognition under AASB 18 requires that:

• A) The entity has transferred to the buyer the significant risks and rewards of ownership.
• B) The entity retains neither continuing managerial involvement to the degree normally associated with ownership nor effective control over the goods.
• C) The costs incurred or to be incurred can be measured reliably.
• D) The amount of revenue can be measured reliably.
• E) All of the given answers.

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Definitions:

Payment

An amount of money paid or due for goods received or services rendered.

EOM

An acronym for "End of Month", often used in accounting and finance to denote transactions that occur or are recorded at the close of the month.

Credited

The acknowledgment of a payment received or the addition of funds to an account.

Account

An account statement that captures all transactions associated with a specific aspect of the accounting equation.