In certain cases, revenue is recognized at the completion of production even though no sale has been made. Which of the following statements is not true?
A) Examples involve precious metals or farm equipment.
B) The products possess immediate marketability at quoted prices.
C) No significant costs are involved in selling the product.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

The statement "Examples involve precious metals or farm equipment" is not true. The correct statement would be "Examples involve products that are custom made to customer specifications and have no alternative use."

In Certain Cases, Revenue Is Recognized at the Completion of Production