Under AASB 118 Interest Revenue Is Recognised as Follows

question 14

Multiple Choice

Under AASB 118 interest revenue is recognised as follows:

• A) On a straight line method
• B) On an effective interest method
• C) On either an effective interest method, or a straight line method, depending on which method the entity feels provides the most relevant and reliable information.
• D) At the time of receipt of the interest.

---

Definitions:

Reinforces

Strengthens or supports an idea, behavior, or material structure.

Operant Conditioning Principles

A method of learning that occurs through rewards and punishments for behavior, established by B.F. Skinner, emphasizing the effects of consequences on behavior.

Monitor

To observe and check the progress or quality of something over a period of time; or a device used for observing, checking, or keeping a continuous record of a process or quantity.

Operant Behavior

A behavior that is influenced by the consequences that follow it, such as rewards or punishments, based on the principles of operant conditioning.