Which of the Following Statement Is Most True

question 30

Multiple Choice

Which of the following statement is most true?

• A) Variable consideration means that the transaction price is uncertain.
• B) Basing an estimate on the most likely amount is always superior to basing an estimate on the expected value.
• C) The most likely estimated amount is estimated by multiplying the possible amounts with their respective probability of occurrence.
• D) When the transaction price is uncertain, revenue should not be recognized.

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Definitions:

Wealth Effect

The change in spending that accompanies a change in perceived wealth, usually through market price changes of assets like homes or investments.

Aggregate Demand

The complete summon for goods and services in an economy, quantified at a particular level of overall price throughout a definite period.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period, which can be influenced by factors like production technology and labor availability.

Increased Immigration

A scenario where the number of people entering a country to live permanently exceeds the number leaving, affecting various aspects of the economy, including the labor market.