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Which statement is not true about accounting rule

  1. A. Accounting rule enable you to defer revenue

  2. B. Accounting Rule enables you to define fixed and variable rule to recognize revenue

  3. C. Accounting rule enable you to define the number of periods and precentage of total revenue that you can record in each accounting period

  4. D. Accounting rule enables you to define the number of periods and amount of invoice that you can bill your customer in each accounting period

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Accounting rules in Oracle Revenue Recognition define how revenue is distributed across accounting periods, not billing schedules. Options A, B, and C all correctly describe accounting rule functionality: deferring revenue, defining fixed/variable recognition rules, and specifying periods/percentages. Option D incorrectly states accounting rules control billing amounts to customers - that is the purpose of invoicing rules or payment schedules, not revenue recognition rules.

AI explanation

Accounting rules in Oracle Receivables control when and how revenue is recognized over time — they let you defer revenue and spread it across periods using fixed or variable percentage schedules. They do not, however, control invoice amounts a customer can be billed in a period; billing amount and invoice creation is governed by transaction/invoicing setup, not accounting rules. So the statement claiming accounting rules define billable invoice amounts per period is the false one.