Revenue Is Generally Recognized When a Sale Occurs

question 83

Multiple Choice

Revenue is generally recognized when a sale occurs.This statement describes the

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

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Business Combination

A transaction or event where two or more companies merge or one company acquires another to consolidate business operations.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.

Horizontal Merger

The combination of two or more firms competing in the same market with the same good or service.