Revenue Is Recognized in Most Businesses

question 105

Multiple Choice

Revenue is recognized in most businesses

• A)Upon completion of the sale or when services have been performed and the business obtains the right to collect the sales price.
• B)When the customer's order is received.
• C)Only if paid in cash.
• D)When cash from a sale is received.
• E)Only if the transaction creates an account receivable.

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Definitions:

Active Avoidance

A type of learning in which an organism learns to prevent an aversive stimulus by making a particular response.

Acquisition Training

involves the repeated pairing of a neutral stimulus with an unconditioned stimulus to elicit a conditioned response.

Extinction

The process in psychology where a conditioned response decreases or disappears when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Negative Reinforcement

A behavioral conditioning principle where the removal of an undesirable or aversive stimulus following a behavior increases the likelihood of that behavior being repeated.