The Earnings Cycle Is Complete Under Two Conditions: ________ and ________

question 226

Multiple Choice

The earnings cycle is complete under two conditions: ________ and ________.

• A) revenue recognition; matching
• B) the sale is complete; the customer has paid the company
• C) at least two years have passed; the customer has paid the company
• D) the sale is complete; the customer has promised to pay the company
• E) the cost of goods sold has been determined; operating revenues exceed operating expenses

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Definitions:

Future Value

The projected value of an investment at a specified future date, taking into account factors like interest rates and time.

Invested

Funds that have been allocated to stocks, bonds, real estate, or other investment vehicles with the expectation of earning a profit.

Compounded Semiannually

Interest on an investment or loan calculated and added to the principal balance twice a year.

Future Value

The value of an asset at a specific date in the future, projecting its growth due to interest or earnings.