Which of the Following Is a Reason Why the IASB

question 12

Multiple Choice

Which of the following is a reason why the IASB and FASB jointly developed a revenue standard?
I. remove inconsistencies and weaknesses in the current revenue recognition literature;
II. provide a more robust framework for addressing revenue recognition issues;
III. improve comparability of revenue recognition practices across the various industries, entities, jurisdictions and capital markets;
IV. provide a single reference point in order to reduce the volume of the relevant standards and interpretations that entities will need to refer to;
V. provide more useful information to users through enhanced-disclosure requirements.

• A) I, II only
• B) II, III and IV only
• C) I, III and IV only
• D) I, II, III, IV and V

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Definitions:

Rent

The payment made by a tenant to a landlord for the use of a property, building, or land.

Marginal Revenue Product

The increased earnings resulting from the application of one additional production factor, such as workforce or investment.

Additional Revenue

Extra income received by a business or government beyond what was originally forecasted or expected.

Factor of Production

Resources used in the production of goods and services, such as labor, capital, land, and entrepreneurship.