Which of the Following Situations Would Require the Recognition of Revenue

question 1

Multiple Choice

Which of the following situations would require the recognition of revenue to be deferred?

• A)when the economic reality of a transaction represents a sale, even though title has not passed to the buyer
• B)when the realizability of the receivable from a sale is not reasonably assured
• C)when the risks of ownership have been transferred to the buyer
• D)when the benefits of ownership have been transferred to the buyer

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Definitions:

Routine Request

A standard or regular way of asking for something within a business or professional context.

Negative Messages

Communications that convey unfavorable, disappointing, or unwelcome information to the recipient.

Direct Approach

A communication style that is straightforward and unambiguous.

Routine Requests

Regular or standard inquiries or demands made in a business or professional context.