Revenue Is Always Recognized When Which of the Following Occurs

question 29

Multiple Choice

Revenue is always recognized when which of the following occurs?

• A) expenses are paid.
• B) cash is collected.
• C) it is earned.
• D) the end of the period arrives.

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Definitions:

Variable Life Insurance

A type of life insurance where the policyholder can allocate a portion of premium dollars to a separate account comprised of various investment funds.

Universal Life Policies

A type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element, which is invested to provide a cash value buildup.

Defined Contribution Plans

Retirement plans where the amount invested is defined up front, but the future benefit is not guaranteed, depending on investment performance.

Pension Funds

Financial programs that collect and invest contributions from employers and employees to provide retirement benefits to the employees.