Which of the following statement is most true?
A) Variable consideration means that the transaction price is uncertain.
B) Basing an estimate on the most likely amount is always superior to basing an estimate on the expected value.
C) The most likely estimated amount is estimated by multiplying the possible amounts with their respective probability of occurrence.
D) When the transaction price is uncertain, revenue should not be recognized.

Question

Quizplus · Accepted Answer

Consideration is variable because it depends on the future resolution of some uncertainty.

Which of the Following Statement Is Most True