In the case of sale of goods on approval basis, revenue should not be recognised until:
All of the given conditions can establish acceptance of goods sent on approval. Revenue is recognised when the buyer accepts the goods or when the applicable rejection…
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In the case of sale of goods on approval basis, revenue should not be recognised until:
Answer and explanation
Correct answer D
All of the given conditions can establish acceptance of goods sent on approval. Revenue is recognised when the buyer accepts the goods or when the applicable rejection period expires without rejection; if no period is fixed, a reasonable time must elapse.
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Kerala SET (LBS Centre)