Recognition of Revenue May Be Accompanied by Which of the Following

question 76

Multiple Choice

Recognition of revenue may be accompanied by which of the following?

• A)A decrease in a liability
• B)An increase in a liability
• C)An increase in an asset
• D)An increase in an asset or a decrease in a liability

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Definitions:

Consideration

A fundamental component in contract law that involves something of value exchanged between parties, making the agreement legally binding.

Enforceability

The degree to which a legal agreement or contract can be upheld and compelled by a court.

Goods-in-bailment

Items that are temporarily entrusted to another party for care, custody, or service, without transferring ownership.

Negotiable Document

A written instrument, such as a check or bill of lading, that promises payment or delivery and can be transferred to another party.