Revenue Is Generally Recognized When Performance Is Achieved and It

question 30

Multiple Choice

Revenue is generally recognized when performance is achieved and it is measurable and collectible.This statement describes the

• A)consistency characteristic.
• B)matching principle.
• C)revenue recognition principle.
• D)relevance characteristic.

---

Definitions:

Contract Of Employment

A legally binding agreement between an employer and an employee, detailing the terms and conditions of employment.

Reasonable Time

A period of time which is fairly appropriate or usual under the given circumstances, often used in legal contexts to define the duration for fulfilling an obligation or contract.

Severance Pay

Compensation provided to an employee upon termination of employment, often based on length of service or the terms of their employment contract.

Profit Sharing

A company policy where employees receive a portion of the company's profits in addition to their regular compensation.