Assume that the expected value method determines a transaction price of $60,000 and most likely amount method determines a transaction price of $50,000. What effect will recording revenue based on the expected value method have relative to the most likely amount method?
Assume that the expected value method determines a transaction price of $60,000 and most likely amount method determines a transaction price of $50,000. What effect will recording revenue based on the expected value method have relative to the most likely amount method?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume that the expected value method determines a transaction price of $60,000 and most likely amount method determines a transaction price of $50,000. What effect will recording revenue based on the expected value method have relative to the most likely amount method?
A.)Revenue will be higher and expenses will be higher
B.) Revenue will be higher and expenses are unaffected
C.) Revenue will be lower and expenses will be lower
D.) Revenue will be lower and expenses are unaffected
E.) Revenue and expenses will be the same
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