An Elevator Suspended by a Vertical Cable Is Moving Downward

question 8

Multiple Choice

An elevator suspended by a vertical cable is moving downward but slowing down.The tension in the cable must be

• A)greater than the weight of the elevator.
• B)less than than the weight of the elevator.
• C)equal to the weight of the elevator.

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Definitions:

Measurability Conditions

Criteria used to determine whether the financial impact of an event can be reliably measured and should be recognized in the financial statements.

Installment Sales Method

An accounting method where revenue is recognized at the time of cash collection rather than at the point of sale.

IFRS

International Financial Reporting Standards; a set of accounting standards developed by the International Accounting Standards Board that is becoming the global standard for the preparation of public company financial statements.

Cost Recovery Method

An accounting technique where revenue is recognized only after the costs of the sold goods or services are recovered, deferring profit recognition.