Revenues Are Recognized When They Are

question 77

Multiple Choice

Revenues are recognized when they are:

• A)Earned and have received cash
• B)Received cash
• C)Earned and realized
• D)Realized

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Definitions:

Compounded Continuously

A calculation involving the natural exponential function for the interest that is added to an amount of money based on an infinitely small rate over a period of time.

Principal

In finance, the original sum of money borrowed in a loan, or put into an investment. In mathematics, it can refer to the principal amount, or initial size of a quantity before interest or growth.

Nearest Cent

Rounding a monetary amount to the closest cent, typically as part of currency calculations to ensure practical transactions.

Decimal Places

The number of digits to the right of a decimal point in a number.