The Rule That (1)requires Revenue to Be Recognized When Goods

question 102

Multiple Choice

The rule that (1) requires revenue to be recognized when goods or services are provided to the customer and (2) at the amount expected to be received from the customer is called the:

• A)Going-concern assumption.
• B)Measurement (Cost)principle.
• C)Revenue recognition principle.
• D)Objectivity principle.
• E)Business entity assumption.

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Definitions:

Taxes On Saving

Charges imposed by government on the interest earned from savings in financial institutions.

National Saving

The total amount of saving in a country, which includes both private savings and public (government) savings.

Closed Economy

An economic system that does not engage in international trade with outside countries, relying on its own resources.

Accounting Identity

A fundamental equation that must always hold true, often without regard to time or specific instances, in accounting and economics.