Revenue Likely Is Recognized Over Time for All the Following

question 60

Multiple Choice

Revenue likely is recognized over time for all the following arrangements except for

• A) Bank earning interest on a long term loan.
• B) Construction of a building.
• C) Providing a two-year gym membership.
• D) Manufacturing generally stocked items ordered by a favored customer.

---

Definitions:

Consolidation

The process of combining multiple entities or financial accounts into a single entity or account for reporting purposes.

Involuntary Dissolution

The forced termination of a corporation's existence by court order, often due to failure to comply with legal requirements or because of actions detrimental to public interest.

Receiver

A court-appointed person responsible for taking custody of and managing property or assets for the benefit of creditors or other parties during legal proceedings.

Resulting Corporation

A corporation that emerges from the combination or merger of two or more separate entities.