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

question 1

Multiple Choice

The term "earned" 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.

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Definitions:

Organizational Sources

The origins of information, authority, or resources within an organization, which can influence decisions and strategies.

Organizational Network

The complex pattern of relationships, communications, and interactions within an organization.

Star Position

A prominent or leading status in a particular field, organization, or group, often characterized by significant influence or visibility.

Coercive Power

A form of power that is based on the ability to deliver punishments or remove privileges to influence behavior.