Which of the Following Correctly Applies the Revenue Realization Principle

question 101

Multiple Choice

Which of the following correctly applies the revenue realization principle?

• A) Recording revenue in December 2014 for products manufactured but not yet delivered to customers.
• B) Recording cash received in advance from customers as revenue when the product is not yet shipped.
• C)Not recording dividend revenue in 2014 until the cash is received in 2015.
• D)Recording revenue in December 2014 for products sold but not yet paid for in full.

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Definitions:

Welfare Programs

Governmental provisions designed to support individuals in need, including those unable to work or facing financial hardships.

Poverty Rate

The proportion of a population living below the national poverty line, indicating the level of economic deprivation in a society.

Non-Hispanic Whites

A demographic group in the United States defined by the Census Bureau as people of European descent who do not identify as Hispanic or Latino.

Hispanics

A term often used in the United States to describe people, cultures, or countries related to Spain, Spanish language, or Latin America.