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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Definitions:

Interstitial Fluid

The fluid that surrounds the cells in tissues, providing nutrients and removing waste.

Plasma

Fluid portion of blood.

Protein

Macromolecule consisting of long sequences of amino acids linked together by peptide bonds.

Fluid Compartments

Divisions within the body where bodily fluids are contained, including intracellular, extracellular, and plasma fluids.