CFA Practice Question

There are 90 practice questions for this study session.

CFA Practice Question

Which of the following actions is not likely to recognize revenue aggressively?

A. Invoicing a sale without shipping merchandise
B. Lessor reporting a lease as a sale when the lessee is treating the transaction as an operating lease
C. Recording revenue at the time a contract is signed and after delivery of goods or services
D. Recording investment income (e.g., interest and dividends received) as revenues
Correct Answer: C

If this was "before" the delivery of goods then the practice would be an example of aggressive revenue recognition.

User Contributed Comments 0

You need to log in first to add your comment.