Revenue Is Recognized When There Is a Decrease in Assets

question 134

True/False

Revenue is recognized when there is a decrease in assets or an increase in liabilities as the result of the company's business activities with its customers.

---

Definitions:

Orphaned Clients

Customers who no longer receive continuous follow-up or support from their original salesperson or customer service representative, often due to staff turnover.

Sales Lead Club

A Sales Lead Club is a group or platform where members share or exchange information about potential customers (leads) who may be interested in certain products or services.

Parallel Referral Sale

A sales strategy where referrals are used simultaneously across different channels or networks to boost potential sales opportunities.

Endless Chain Method

A sales technique in which a salesperson asks each client or customer for referrals to new potential clients, theoretically creating an endless chain of prospects.