Revenue from a Credit Sale Should Not Be Recognised Until

question 4

Multiple Choice

Revenue from a credit sale should not be recognised until:

• A) the goods have been paid for.
• B) the warranty period has expired.
• C) collection is reasonably assured.
• D) it is certain that the goods will not be returned.

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Definitions:

Equally Distributed

A distribution paradigm where resources, wealth, or opportunities are evenly shared among all members of a society or group.

45 Degree Line

A reference line in economic graphs that represents where the value of the independent variable is equal to the value of the dependent variable.

Income

The money received, usually from a job, business, or assets, over a certain period of time.

Income Distribution

The way in which total income is shared among the population or different segments of the economy.