In Applying the Revenue Principle to a Given Transaction, the Most

question 78

Multiple Choice

In applying the revenue principle to a given transaction, the most important moment or period in time is when which of the following happens?

• A) sales transaction is completed (i.e., ownership passes) or services are rendered.
• B) related cash inflows occur.
• C) the service contract is signed regarding service to be performed.
• D) related expenses are incurred.

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