The Core Revenue Recognition Principle Has Two Requirements for Recognizing

question 54

Multiple Choice

The core revenue recognition principle has two requirements for recognizing revenue.Which of the following is one of these requirements?

• A)The customer has paid for the goods or services.
• B)Delivery of goods or performance of service has been scheduled.
• C)The amount the company expects to receive is determinable.
• D)The customer has signed a contract.

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Definitions:

Rail

A mode of transportation that involves the movement of goods or passengers on trains along a set of tracks.

Carrier

A company or individual that provides transportation services for goods or people.

Straight Bill Of Lading

A document issued by a carrier that specifies the goods being transported are to be delivered to the specified party, without endorsement.

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.