Question

(b) “Revenue is recognized when sale is made or services are rendered?”. Explain three exception to the general rule

Answer 1

The exceptions to this rule are given below. 1) Hire purchase− When goods are sold on hire-purchase system , the amount received in instalments is treated as revenue. 2) Long term construction contract− The long term projects like construction of dams, highways, etc. have long gestation period.

Answer 2

Answer:

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