The Term, "Realization," in Revenue Recognition Refers to Which of the Following

question 2

Multiple Choice

The term, "realization," in revenue recognition refers to which of the following?

• A) The entity has completed, or substantially completed, the activities it must perform to be entitled to the revenue benefits.
• B) The product or service has been exchanged for cash, claims to cash, or an asset that is readily convertible to a known amount of cash or claims to cash.
• C) The entity has received an irrevocable order for goods or services.
• D) Cash has been received with an irrevocable order for goods or services.
• E) None of these.

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Definitions:

Adhesive Tapes

A strip of material with an adhesive on one side, used for binding or attaching objects together.

Accompany

To go along with someone as a companion or to be present with them in some activity or context.

Scheduling

The action of arranging, controlling, and planning the time and resources for tasks, events, or activities to optimize efficiency.

Drive Home

Drive Home often means to emphasize or make a point clearly and forcefully.