Which of the following methods is not a practical way of realizing revenue?
Correct answer: D. Moving average method
- A. Delivery method
- B. Percentage-of-completion method
- C. Production method
- D. Moving average method
Explanation
Delivery, production, and percentage-of-completion methods are revenue-recognition approaches in appropriate circumstances. Moving average is an inventory-costing method, not a method of realising revenue.
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About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
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