Revenues Are Reported When

question 97

Multiple Choice

Revenues are reported when

• A) a contract is signed
• B) cash is received from the customer
• C) work is begun on the job
• D) work is completed on the job

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

Equity Method Investments

An accounting technique used to assess the profits earned through an investment in another company, incorporating these profits into the investing company's income statements.

Fair Value Option

Allows companies the choice to measure financial instruments at their fair values, with changes reflected in earnings.