Which of the Following Suggested Bases of Recognizing Revenue Is

question 35

Multiple Choice

Which of the following suggested bases of recognizing revenue is not permitted by authoritative literature?

• A)During production for long-term construction contracts if reliable estimates of the extent of progress and of the cost to complete can be made and if reasonable assurance of collectibility exists.
• B)At the completion of production if immediate marketability at a quoted price exists for a product whose units are interchangeable.
• C)On an accretion basis where product marketability at known prices exists and it is desirable to recognize changes in assets, such as growing timber.
• D)On a cash basis if no reasonable basis exist for estimating collectibility.

---

Definitions:

Discretion

The freedom to decide what should be done in a particular situation, often within the framework of official authority.

Federal Cases

Legal cases that fall under the jurisdiction of federal courts, often involving questions of federal law, interstate matters, or disputes between states and the federal government.

U.S. District Courts

The general trial courts of the United States federal court system where civil and criminal cases are filed and heard.

Trial Courts

Courts of law where cases are heard and decided for the first time, involving the presentation of evidence and legal arguments before a judge or jury.