Under IFRS, Revenue for a Product Sale Should Occur When

question 73

Multiple Choice

Under IFRS, revenue for a product sale should occur when:

• A) Inventory production is complete.
• B) Warranty fulfillment is viewed as unlikely.
• C) The seller has transferred to the buyer the risks and rewards of ownership and doesn't effectively manage or control the goods.
• D) The buyer has paid a preponderance of installment amounts due.

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Definitions:

Amortized

Adjusted through gradual reduction of the loan balance or asset value over time by making regular payments that cover both principal and interest.

Goodwill

An intangible asset that arises when a business is purchased for more than the fair value of its net identifiable assets.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Property, Plant, & Equipment

Long-term tangible assets that are used in the operation of a business and are expected to be used over more than one fiscal year.