Revenue recognition prior to period of sale is used to reflect
A) reliability of the financial information
B) economic substance instead of legal form
C) the inability of a producer to determine acquisition cost
D) the recognition of propositional performance

Question

Quizplus · Accepted Answer

Revenue recognition prior to period of sale is used to reflect economic substance instead of legal form. This means that the revenue is recognized based on the substance of the transaction rather than the legal form. This approach ensures that the financial information is more reliable and accurately reflects the actual economic activity of the company.

Revenue Recognition Prior to Period of Sale Is Used to Reflect