The Two Criteria That Need to Be Met in Order

question 53

Multiple Choice

The two criteria that need to be met in order revenue to be recognized are

• A) Work has been started and cash collection is reasonably assured.
• B) Work has been started and cash collection has occurred.
• C) Work has been substantially completed and cash collection is reasonably assured.
• D) Work has been substantially completed and cash collection has occurred.

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Definitions:

Federal Outlays

Refers to the total amount of money the federal government spends in a fiscal year, including spending on services, subsidies, and interest on debt.

Federal Outlays

Government spending or expenditures, including the money spent on defense, education, social security, and other public services.

Federal Budget

A plan for federal government outlays and revenues for a specified period, usually a year.

Fiscal Policy

Government strategies to influence a country's economy through public spending and taxation decisions.