According to Generally Accepted Accounting Principles (GAAP), Revenue Is Recognized

question 22

Multiple Choice

According to generally accepted accounting principles (GAAP) , revenue is recognized as income when:

• A)a contract is signed to perform a service or deliver a good.
• B)the transaction is complete and the goods or services are delivered.
• C)payment is requested.
• D)income taxes are paid.
• E)All of the above.

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Definitions:

AASB 141

This is the Australian Accounting Standards Board's standard related to Agriculture, providing the accounting requirements for agricultural activity.

IAS 41

International Accounting Standard 41, which governs the accounting for agriculture.

Estimated Costs

Costs that are predicted based on historical data, trends, and analyses, used for budgeting, planning, and decision-making purposes.