Which of the Following Is Not a Criterion Pertaining to Revenue

question 42

Multiple Choice

Which of the following is not a criterion pertaining to revenue recognition for the sale of goods under the earnings approach?

• A) Amount of returns is known with certainty.
• B) Collection is reasonably assured.
• C) Amount of the revenue can be reliably measured.
• D) Significant risks and rewards of ownership have been transferred to the buyer.

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Definitions:

Deglutition

Act of swallowing.

Salivary Amylase

Salivary amylase is an enzyme secreted by the salivary glands that begins the digestive process by breaking down starch into simpler sugars.

Starch Digestion

The process by which dietary starch is broken down into simpler sugars, like glucose, by the action of enzymes.

Parotid Glands

The largest salivary glands, located near the ears, that produce saliva to aid in digestion.