At present,in most cases,the firm must be a direct participant in a transaction before revenue can be recognised.

Question

Quizplus · Accepted Answer

This statement is true. In order to recognize revenue, the firm must have participated directly in the transaction. This means that the firm must have provided goods or services in exchange for payment or other consideration. Simply having a stake in the transaction, such as through ownership of shares or other investments, does not qualify as direct participation.

At Present,in Most Cases,the Firm Must Be a Direct Participant