Which of the Following Suggested Bases of Recognizing Revenue Is

question 35

Multiple Choice

Which of the following suggested bases of recognizing revenue is not permitted by authoritative literature?

• A)During production for long-term construction contracts if reliable estimates of the extent of progress and of the cost to complete can be made and if reasonable assurance of collectibility exists.
• B)At the completion of production if immediate marketability at a quoted price exists for a product whose units are interchangeable.
• C)On an accretion basis where product marketability at known prices exists and it is desirable to recognize changes in assets, such as growing timber.
• D)On a cash basis if no reasonable basis exist for estimating collectibility.

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Definitions:

Scatterplot

A type of graph in statistics that displays values for typically two variables for a set of data.

Positive Correlation

A relationship between two variables in which both variables move in tandem, meaning that as one variable increases or decreases, the other does as well.

Normal Curve

A symmetrical, bell-shaped curve that represents the distribution of many physical and psychological attributes.

Distribution

The act of sharing something out among a number of recipients, or the way in which something is spread or dispersed.