Which of the Following Criteria Must Be Satisfied in Order

question 10

Multiple Choice

Which of the following criteria must be satisfied in order to recognize revenue for the receipt of interest, royalties, and dividends?

• A) The portion of total services can be reliably measured.
• B) Significant risks and rewards have been transferred to the buyer.
• C) The seller has no continuing involvement.
• D) The amount of revenue can be reliably measured.

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Definitions:

Operating System

The software that manages the hardware and software resources of a computer system and provides common services for computer programs.

Large Profits

Substantial earnings exceeding the costs of production and operation of a business.

Innovation

The process of creating new ideas, products, or methods, which can significantly change market dynamics or societal practices.

Annual Interest Rate

The percentage of the principal amount of a loan that is charged as interest to the borrower for one year.