Which of the Following Expressions Correctly Describes When Revenues and Expenses

question 31

Multiple Choice

Which of the following expressions correctly describes when revenues and expenses are recognized under accrual basis accounting?

• A)Revenues when cash is received;expenses when cash is paid.
• B)Revenues when cash is received;expenses when the expense is incurred.
• C)Revenues when the performance obligation is satisfied;expenses when the expense is incurred.
• D)Revenues when the performance obligation is satisfied;expenses when cash is paid.

Distinguish between gross sales, net sales, and gross margin.

Recognize how inventory management impacts financial statements.

Understand the financial impact of price adjustments on sales and profitability.

Apply the concept of cost of goods sold (COGS) in the context of retail pricing and profitability.

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Definitions:

Effective Listening

A communication skill that involves actively focusing on and understanding the speaker's message, demonstrating attention and empathy.

Listening to Managers

The act of actively paying attention to information or instructions given by managerial personnel.

Barriers to Good Listening

Factors that interfere with the ability to accurately receive and interpret messages during the communication process, such as noise, distractions, biases, or lack of interest.

Listening Barriers

Factors that prevent effective absorption, understanding, or response to spoken messages.