Which Two of the Following Are True of Bill and Hold

question 121

Multiple Choice

Which two of the following are true of bill and hold transactions?

• A)A customer is billed for goods, but goods are not shipped.
• B)The customer must have a sound economic reason for purchasing the goods and asking the seller to continue to hold the goods.
• C)The transaction must be initiated by the seller.
• D)Accounting principles have very broad criteria for when revenue can be recognized for a bill and hold transaction.

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Definitions:

Wage Labor

An employment system where workers are paid a fixed rate for the hours they work, as opposed to being paid a salary or owning a share of production.

Economic Independence

The condition of having sufficient personal wealth to live, without needing to work for basic necessities.

Poverty

The state of being extremely poor or lacking sufficient resources to meet basic living needs such as food, shelter, and healthcare.

Ghost Dance Movement

A spiritual movement that emerged among Native American peoples, which prophesied an end to European American expansion and a revival of the Native American way of life.