How Should Revenues Be Recognized in Interim Periods

question 63

Multiple Choice

How should revenues be recognized in interim periods?

• A) In the same way as they are recognized on an annual basis.
• B) On the cash basis.
• C) On an annualized basis.
• D) On a seasonal basis.
• E) There are no revenues recognized in interim periods.

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Definitions:

Quasi Estoppel

A legal doctrine preventing a party from asserting rights or facts that contradict their past actions or statements.

Bilateral Contract

A type of contract involving mutual obligations whereby each party promises to perform an act in exchange for the other party's act.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise made to a second party if the latter has reasonably relied on that promise to their detriment.

Adequacy of Consideration

Assessing whether something of legal value has been exchanged in a contract to justify the parties’ obligations.