According to AASB 118 Revenue,revenue from Services Can Be Recognised

question 23

Multiple Choice

According to AASB 118 Revenue,revenue from services can be recognised when:
I.The amount can be measured reliably.
II.It is probable that the economic benefits will flow to the entity.
III.The stage of completion can be reliably measured.
IV.The costs incurred and the costs of completion can be measured reliably.

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

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Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the leverage and financial health of the company.

Total Assets

The sum of all assets owned by a company, including current, fixed, and intangible assets, indicating the total resources.

Total Liabilities

The sum of all financial obligations a company owes to external parties, including debts, accounts payable, and other liabilities.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation.