Under Accrual Accounting, Which of the Following Statements About Revenue

question 25

Multiple Choice

Under accrual accounting, which of the following statements about revenue recognition is true?

• A)Revenue recognition is always straightforward.
• B)Revenue can only be recognized when the goods are delivered.
• C)Revenue can only be recognized when the expenses are paid.
• D)Revenue recognition should occur when the entity enjoys the economic benefit.

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Definitions:

Variable-Ratio Schedule

A type of reinforcement schedule in which a response is reinforced after an unpredictable number of responses, promoting high and steady response rates.

Fixed-Ratio Schedule

A reinforcement strategy in behaviorism where a response is reinforced only after a specified number of responses.

Reinforcement

In behavioral psychology, a process by which a behavior becomes more likely to occur because it is followed by a reward or the removal of an unpleasant stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period without exposure to the conditioned stimulus.