What must be considered when a contract extends more than one year?
A) The transaction price must be adjusted for the time-value of money
B) Whether the contract will be satisfactorily concluded.
C) Whether revenue should be deferred until the contract is completed.
D) If the costs and income are recognized in the same period (matching principle).

Question

Quizplus · Accepted Answer

When a contract extends beyond one year, the transaction price must be adjusted for the time-value of money to reflect the present value of future cash flows, as per accounting standards.

What Must Be Considered When a Contract Extends More Than