Forensic Accounting

Category - Specialized Forensic Knowledge

Which of the following holds the most relevance in terms of the standard for revenue recognition?
  1. Place
  2. Seller
  3. Buyer
  4. Timing
Explanation
Answer: D - The most relevant aspect to consider in terms of revenue recognition is the concept of relative timing. Revenue recognition is a fundamental concept in accounting, which relates to the ‘matching concept.’ It refers to the fact that revenue should be recognized during the period in which it occurs. Therefore, the timing of revenue recognition holds the most relevance in terms of the standard.
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