Accountants Face a Problem of When to Recognize Revenue

question 46

Multiple Choice

Accountants face a problem of when to recognize revenue.Which of the following methods of recognizing revenue is not used in practice?

• A) point of sale
• B) point of order acceptance
• C) end of production
• D) receipt of cash
• E) revenue recognized during production

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Definitions:

All-or-None Law

A principle stating that the strength of a response of a nerve or muscle fiber is not dependent on the strength of the stimulus. If a stimulus is above a certain threshold, a nerve or muscle fiber will fire.

Impulse

A sudden strong and unreflective urge or desire to act.

Necrotic

Pertaining to the death of cells or tissues in the body, often as a result of disease, injury, or lack of blood supply.

Autonomic Nervous System

A part of the nervous system that controls involuntary actions of the smooth muscles and heart and also regulates glandular functions.