Revenue Should Be Recognised When

question 14

Multiple Choice

Revenue should be recognised when:
(i) it can be reasonably measured in dollar terms
(ii) cash,a promise of cash,or other asset,has been received
(iii) most of the costs of generating the revenue have been incurred,and those remaining can be measured with reasonable accuracy.

• A) (i)and (ii)only
• B) (i)and (iii)only
• C) (ii)and (iii)only
• D) (i),(ii)and (iii).

---

Definitions:

Usage Rate

The quantity or the extent to which consumers use a product or service within a given timeframe.

Specific Period

A defined length of time during which certain events or conditions occur or are measured.

Patronage

The support or regular business given to a store, hotel, or other service provider by customers.

Behavioral Segmentation

The process of dividing a market into groups based on consumer knowledge, attitudes, uses, or responses to a product.