Which of the Following Is Not a Condition That Must

question 62

Multiple Choice

Which of the following is not a condition that must be met under AASB 118 'Revenue' before revenue from the sale of goods is recorded?

• A)The seller has effectively transferred ownership to the buyer.
• B)The cash for the sale has been received.
• C)The amount of revenue and related costs can be measured reliably.
• D)All of the above are conditions that must be met.

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Definitions:

Contribution Margin Ratio

A metric that shows what percentage of sales revenue is available to cover variable costs and contribute to fixed costs after all variable expenses have been covered.

Cost Structure

The composition of fixed and variable costs that a company incurs during the production of goods or services, affecting profitability.

CVP Chart

A graphical representation used in Cost-Volume-Profit analysis to show the relationship between costs, volume of sales, and profit.

Major Components

Principal parts or elements that form the larger system or structure.