At What Point Do Most Companies Recognize Liabilities in the Acquisition

question 66

Multiple Choice

At what point do most companies recognize liabilities in the acquisition and payment cycle when the goods are shipped FOB destination?

• A)When the purchase order is issued
• B)When the vendor acknowledges receipt of the order
• C)When the goods or services are received
• D)When the vendor invoice is received

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Definitions:

Dividend Growth Rate

The percentage rate of annual growth in the dividends a company pays out to shareholders.

Annual Dividend

The total dividend payment a company distributes to its shareholders annually, typically derived from its profits.

Capital Gain Yield

The change in the price of an investment, measured from the time of purchase to the current or sale time, expressed as a percentage.