What Is the Amount of Revenue Recognized in the Statement

question 101

Multiple Choice

What is the amount of revenue recognized in the statement of earnings by a company that sells goods to customers?

• A) The cash collected from customers during the current period.
• B) Total sales, both cash and credit sales, for the period.
• C) Total sales minus beginning amount of trade receivables.
• D) The amount of cash collected plus the beginning amount of trade receivables.

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Definitions:

Virtually Identical

Being nearly the same in every way, especially in appearance or quality.

Synapse

A junction between two nerve cells, where impulses pass by diffusion of a neurotransmitter.

Thyroid Gland

An endocrine gland located in the neck that produces hormones regulating metabolism, energy generation, and growth.

Thyroxin

A hormone produced by the thyroid gland that regulates metabolism, energy generation, and growth and development; also known as thyroxine or T4.