The Revenue Recognition Principle Indicates That Revenue Is Recognized When

question 62

Multiple Choice

The revenue recognition principle indicates that revenue is recognized when it is probable that the

• A)economic benefits will flow to the company.
• B)benefits can be measured reliably.
• C)economic benefits will flow to the company and the benefits can be measured reliably.
• D)none of these.

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Definitions:

De Novo

A Latin term meaning "from the beginning," used in law to indicate a trial or hearing is to be conducted anew.

ALJ

An Administrative Law Judge, who presides over hearings and disputes involving federal regulatory agencies, providing quasi-judicial decisions.

Governing Body

An organization or group in charge of making decisions and overseeing the administration of a specific area or institution.

Sunshine Act

Legislation intended to increase transparency and public confidence in the government by requiring meetings, decisions, and records to be open to the public.