Which of the Following Is NOT a Criteria for Recognition

question 18

Multiple Choice

Which of the following is NOT a criteria for recognition of revenue from the sale of goods under IAS 18 Revenue?

• A) The seller has transferred the significant risks and rewards of ownership to the buyer.
• B) The costs incurred, or to be incurred, in respect of the transaction can be measured reliably.
• C) The stage of completion at the statement of financial position date can be measured reliably.
• D) The amount of revenue can be measured reliably.

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Definitions:

Acceptance

The agreement by a party to the terms of an offer, creating a legally binding contract.

Prompt Shipment

The process of quickly and efficiently sending goods to a buyer shortly after receiving the order.

Acceptance

A term used in contract law, acceptance refers to the act of agreeing to the terms of an offer, thereby creating a binding contract.

Canceled

The act of formally terminating or voiding an agreement, contract, policy, or event.