Which of the Following Is Not True? Firms Recognize Revenue

question 21

Multiple Choice

Which of the following is not true? Firms recognize revenue

• A)when they have completed an earnings process or performed most or all of their obligations to customers, usually the delivery of a product or service.
• B)when they have received cash.
• C)using the percentage-of-completion method when the firms sell products under long-term contracts, such as construction companies.
• D)using the completed contract method [U.S.GAAP, only] when firms cannot reasonably estimate revenues and costs.
• E)using a variant of the cost-recovery method [IFRS, only] when firms cannot reasonably estimate revenues and costs.

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