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.

---

Definitions:

Lease Term

The duration for which a lease agreement is effective, typically specified in months or years.

Fee Simple Absolute

The most complete ownership of property recognized by law, where the owner has unlimited control over the property and can dispose of it at will.

Parcel

A package or bundle of goods wrapped or packed up; also can refer to an individual plot of land.

Personal Property

Movable items owned by an individual or corporation, as opposed to real property like land or buildings.