Which of the Five Revenue Recognition Criteria Is Based on the Matching

question 12

Multiple Choice

Which of the five revenue recognition criteria is based on the matching concept?

• A)Significant risks and rewards of ownership have transferred.
• B)The amount of revenue can be reasonably measured
• C)The costs of earning the revenue can be reasonably measured.
• D)Collection of payment is probable.

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Definitions:

Electrons

Negatively charged particles present in all atoms that serve as the main conduits for electrical current in solid materials.

Hydrophilic

Hydrophilic substances are those that have an affinity for water, meaning they can dissolve in, absorb, or be wetted by water.

Polar

Relating to the extreme northern or southern regions of the Earth, characterized by extreme cold and ice-covered landscapes.

Hydrophobic Molecules

Molecules that repel water, typically nonpolar substances that do not mix with water.