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 the provision of services?

• A)The outcome of the transaction must be reliably estimable before the percentage of completion method can be used to record revenue.
• B)Ownership must pass to the buyer before revenue can be recorded.
• C)Stage of completion does not need to be reliably measurable.
• D)Control must pass to the buyer before revenue can be recorded.

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Definitions:

Periodic Interest Rate

The interest rate charged or earned over a specific period of time, often used in the context of loans or investments.

Annuity

An investment plan that entails fixed payments to beneficiaries, mainly to serve as an income source for those who have retired.

Payment Interval

The periodicity of payments being made or received, for example, on a monthly, quarterly, or yearly basis.

Compounded Yearly

An interest calculation where the interest is added to the principal balance once a year, allowing the total amount to earn interest annually.