What Does the Phrase, "Revenue Is Recognized When Earned" Mean

question 28

Multiple Choice

What does the phrase, "revenue is recognized when earned" mean?

• A)Revenue is recorded in the accounting records when the goods are received from a supplier, and reported on the income statement when sold to the customer.
• B)Revenue is recorded in the accounting records and reported on the income statement when the cash is received from the customer.
• C)Revenue is recorded in the accounting records when the goods are sold to a customer, and reported on the income statement when the cash payment is received from the customer.
• D)Revenue is recorded in the accounting records and reported on the income statement when goods are sold and delivered to a customer.

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Definitions:

Sympatric Speciation

The evolution of new species from a single ancestral species while inhabiting the same geographical region, without geographic isolation.

Disruptive Selection

A type of natural selection that favors extreme values of a trait over intermediate values, possibly leading to speciation.

Incipient

Relating to the initial stage; just beginning to happen or develop.

Crater Lake

A lake formed in the caldera of a collapsed volcano, known for its deep, clear water and its significance in geological and ecological studies.