Which Three Types of Transaction Produce Revenue Under IAS 18

question 7

Multiple Choice

Which three types of transaction produce revenue under IAS 18?

• A)sale of goods; the use of an asset yielding interest; an increased fair value of an asset
• B)sale of goods; provision of services; the use of an asset yielding interest
• C)provision of services; an increased fair value of an asset; a dividend from an associated company
• D)a dividend from an associated company; sale of goods; the use of an asset yielding interest

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Definitions:

Producer Surplus

The gap between the price producers are willing to accept for offering a good or service and the actual price they receive.

World Price

The global equilibrium price of a good or service determined by worldwide supply and demand.

Consumer Surplus

Consumer surplus refers to the difference between what consumers are willing to pay for a good or service and what they actually pay.

Producer Surplus

The difference between what producers are willing to accept for a product versus what they actually receive, usually seen as a measure of producer welfare.