Which of the Following Criteria Should Be Met by a Magazine

question 9

Multiple Choice

Which of the following criteria should be met by a magazine in order to be eligible for verification audits by Audit Bureau of Circulations?

• A)It must be published on a controlled-circulation basis.
• B)It must be a business publication.
• C)The publication should have 70 percent or more paid circulation.
• D)The publication must be a member of the Magazine Publishers of America trade association.
• E)The first 70 percent that have the lowest amount of clutter.
• Only publications with 70 percent or more paid circulation are eligible for verification audits by ABC.In 2002 the ABC approved new guidelines for counting magazine circulation and sales.The changes did away with the long-standing "50 percent rule," in which copies that sold for less than half of the basic price of a magazine could not be counted as paid circulation.

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Definitions:

Revenue Recognition Principle

The Revenue Recognition Principle is an accounting guideline that determines the specific conditions under which revenue is recognized or accounted for.

Expense Recognition Principle

An accounting principle that expenses should be recognized in the period in which they are incurred, matching expenses with related revenues.

Relevant Accounting Information

Financial data and insights that are pertinent and useful for decision-making processes.

Predictive Value

The capability of financial information to help users in predicting future trends and outcomes.