Café Espresso Is a Coffee Shop Subject to the Laws

question 1

Multiple Choice

Café Espresso is a coffee shop subject to the laws of Illinois. In Illinois, the highest-ranking (superior) law is​

• A) ​a case decided by the Illinois Supreme Court.
• B) ​a rule created by a Illinois state administrative agency.
• C) ​a provision in the Illinois constitution.
• D) ​a statute enacted by the Illinois legislature.

---

Definitions:

Installment Sales Method

An accounting technique that recognizes revenue and expenses from a sale when payments are actually received, rather than at the point of sale.

Realized Gross Profit

The difference between the cost of goods sold and the sales revenue received, specifically referring to profit that has been recognized once a transaction is completed.

Initial Franchise Fees

The upfront cost paid by a franchisee to a franchisor to enter into a franchise agreement, typically covering training, support, and the right to use trademarks.

Revenue Recognition

The accounting principle that determines the specific conditions under which income becomes recognized as revenue.