(CMA adapted, Dec 92 #18) The mining industry frequently recognizes revenue using the completion of production method.This method is acceptable under the revenue recognition principle because
$\begin{array}{ccc}
\text { Sales prices are } & \text { Assets are } & \text { Production cost } \
\text { reasonably } & \text { readily } & \text { can be readily }\
\text { assured } & \text {realizable } & \text {determined }
\end{array}$
A)$\begin{array}{lll}
\text { Yes } & \text { Yes } & \text { No }
\end{array}$
B)$\begin{array}{lll}
\text { Yes } & \text { No } & \text { Yes }
\end{array}$
C)$\begin{array}{lll}
\text { No } & \text { Yes } & \text { No }
\end{array}$
D) $\text { No } \quad \text { No } \quad \text { Yes }$
E)$\text { No } \quad \text { Yes } \quad \text { Yes }$

Question

(CMA adapted, Dec 92 #18) The mining industry frequently recognizes revenue using the completion of production method.This method is acceptable under the revenue recognition principle because 
$\begin{array}{ccc}
\text { Sales prices are } & \text { Assets are } & \text { Production cost } \
\text { reasonably } & \text { readily } & \text { can be readily }\
\text { assured } & \text {realizable } & \text {determined }
\end{array}$
A)$\begin{array}{lll}
\text { Yes } & \text { Yes } & \text { No }
\end{array}$
B)$\begin{array}{lll}
\text { Yes } & \text { No } & \text { Yes }
\end{array}$
C)$\begin{array}{lll}
\text { No } & \text { Yes } & \text { No }
\end{array}$
D) $\text { No } \quad \text { No } \quad \text { Yes }$
E)$\text { No } \quad \text { Yes } \quad \text { Yes }$

Quizplus · Accepted Answer

The completion of production method is acceptable because sales prices can be reasonably assured, assets are readily realizable, and production costs can be readily determined, making option A correct.

(CMA Adapted, Dec 92 #18) the Mining Industry Frequently Recognizes