A financing component exists in a sales contract if delivery occurs in advance of payment or payment occurs in advance of delivery by more than ________.
A)six months
B)one year
C)two years
D)three years

Question

Quizplus · Accepted Answer

According to the International Financial Reporting Standards (IFRS 15), a financing component exists in a sales contract if the period between delivery and payment is greater than one year. Therefore, the correct choice is B, one year.

A Financing Component Exists in a Sales Contract If Delivery