What type of revenues are reported using mark-to-market accounting?
A) Oil sales
B) Consulting services
C) Energy sales contracts
D) Energy services

Question

Quizplus · Accepted Answer

Mark-to-market accounting is primarily used for financial instruments, such as energy sales contracts. It involves adjusting the value of these contracts to reflect current market prices, which can impact revenue recognition. Therefore, energy sales contracts would be the most likely type of revenue reported using this accounting method.

What Type of Revenues Are Reported Using Mark-To-Market Accounting