Which of the Following Are the Two Components of the Revenue

question 64

Multiple Choice

Which of the following are the two components of the revenue recognition principle?

• A)Cash is received and the amount is material.
• B)It is probable that future economic benefits will flow to the company and it is possible to reliably measure the amount.
• C)Production is complete and there is an active market for the product.
• D)Cash is realized or realizable and production is complete.

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Definitions:

Pairwise Votes

A voting system method where candidates are compared to each other in pairs, with votes indicating preference between each pair to determine a winner.

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, often leading to inefficiencies.

Market Wage

The prevailing wage rate for labor in a particular market, influenced by supply and demand.

Pairwise Majority Voting

A voting system in which each option is compared head-to-head with every other option, and the option that wins the most comparisons is selected.