Which three statements are true about accounting rules? (Choose three.)

Question

Options

• AAccounting rules enable you to defer revenue.
• BAccounting rules enable you to define fixed and variable rules to recognize revenue.
• CAccounting rules enable you to define the number of periods and percentage of total revenue
• DAccounting rules enable you to define the number of periods and amount of invoice that you can

• A
  74% (17)
• D
  26% (6)

Explanation

Accounting rules (used in Oracle Receivables and similar ERP systems) are specifically designed to control when and how revenue is recognized across accounting periods. Options A, B, and C are correct because accounting rules exist precisely to defer revenue - spreading it across future periods rather than recognizing it all at once - and they support both fixed rules (set number of periods with defined percentages) and variable rules (flexible period counts). Option C is correct because the core configuration of an accounting rule involves specifying the number of periods alongside the percentage of total revenue allocated to each period.

Option D is the distractor: accounting rules work with percentages of revenue, not with the invoice amount itself. The invoice amount is determined at the transaction level, not by the accounting rule - confusing the two is a common trap.

Memory tip: Think of accounting rules as a "revenue schedule blueprint" - they answer how long (periods) and how much of the pie (percentage), never what the pie costs (invoice amount). If an answer mentions controlling the invoice amount, it's wrong.

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