Generally, Revenue from Sales Should Be Recognized at a Point

question 95

Multiple Choice

Generally, revenue from sales should be recognized at a point when

• A) management decides it is appropriate to do so.
• B) the product is available for sale to the ultimate consumer.
• C) the entire amount receivable has been collected from the customer and there remains no further warranty liability.
• D) None of these answers are correct.

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Definitions:

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization.

Performance Perspectives

Performance categories for assessment on the balanced scorecard, traditionally made up of financial, internal processes, learning and growth, and customer perspectives.

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer, involved in the supply of a product or service.

Multifunctional Team

A team composed of members from different functional areas of an organization working towards a common goal.