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:

Laissez-Faire

An economic philosophy of free-market capitalism that opposes government intervention.

Circular Flow

A model in economics that illustrates how money moves through an economy between producers and consumers, highlighting the interdependencies of different economic sectors.

Public Ownership

Ownership of assets by the government or public entities, as opposed to private individuals or companies.

Competition

the rivalry among businesses to attract customers and achieve such goals as higher sales, market share, and innovation.