Realization Occurs When

question 60

Multiple Choice

Realization occurs when

• A)revenues have been earned
• B)noncash resources are converted to cash or rights to cash
• C)an item is formally recorded in the books
• D)an item is reported in a company's financial statements

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Definitions:

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of more than 50% of the subsidiary's voting stock.

Non-executive Director

A member of a company's board of directors who is not part of the executive team, providing oversight and valuable perspective without managing day-to-day operations.

Related Party

A person or entity that is related to the entity that is preparing its financial statements.

Controlling Investment

A significant ownership interest in a company, providing the ability to exercise control over its operations and policies.