When Revenue Is Earned from the Provision of Services, All

question 59

Multiple Choice

When revenue is earned from the provision of services, all of the following are necessary for revenue recognition EXCEPT

• A) economic benefits from the transaction will flow to the seller.
• B) the amount of revenue can be reliably measured.
• C) the costs incurred to complete the transaction can be reliably measured.
• D) the seller has no continuing involvement.

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Definitions:

Triglyceride

A type of fat found in blood that is made of three fatty acids attached to a glycerol, serving as a major form of energy storage for the body.

Geranial

A naturally occurring aldehyde also known as citral, a component of many essential oils, characterized by a strong lemon scent.

Isoprene Units

The repeating five-carbon unit, C₅H₈, found in natural rubber and other terpenes.

Steroids

A class of organic compounds with a characteristic molecular structure containing four rings of carbon atoms; found naturally in plants, animals, and fungi, and are used in medicine, often as hormones.