All of the following statements are true except:
A)A company that has multiple lines of business must consistently apply one revenue recognition policy for all types of revenue.
B)A company that has multiple lines of business can use different methods of revenue recognition for different products.
C)A company that has multiple lines of business must tell users what policies they are using so that that they can make informed decisions
D)A company that has multiple lines of business must choose revenue recognition policies that are appropriate for their revenue streams.

Question

Quizplus · Accepted Answer

This statement is not entirely true. A company that has multiple lines of business may apply different revenue recognition policies for different types of revenue, as long as they are consistent within each separate line of business. They do not need to be consistent across all types of revenue for the entire company.

All of the Following Statements Are True Except