Which of the Following Statements Is Correct

question 93

Multiple Choice

Which of the following statements is correct?

• A) Revenue is recognized at the time of shipment when goods are shipped FOB destination.
• B) Sales returns and allowances are reported as operating expenses on an income statement.
• C)Revenue is recorded when title and risks of ownership transfer to the buyer.
• D)Sales discounts are reported as cost of sales on an income statement.

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Definitions:

Observed

Observed, in statistics, refers to the actual data or values collected from experiments or studies, as opposed to expected or theoretical values.

Chi-square Value

A statistic used to measure the differences between observed and expected frequencies in categorical datasets, testing for independence or goodness of fit.

Observed

Refers to measured or witnessed information and data gathered through experimentation or research.

Expected

Refers to the predicted outcome or value in probability and statistics, often based on theoretical or historical data.