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.
ANSWER: C
You might also like to view...
Forcing a respondent to choose a specific response to a question is called which of the following?
A. an open-ended question B. a close-ended question C. a direct answer D. a statement of fact
The first step in conducting factor analysis is ________
A) construct the correlation matrix B) determine the method of factor analysis C) formulate the problem D) determine the number of factors
A supply chain includes only processes and services that add value to the final product or service
Indicate whether the statement is true or false
A ________ arises when the sender and receiver do not share a common language
A) psychological barrier B) semantic barrier C) language barrier D) physiological barrier E) mixed message