Which of the Following Is True Regarding Revenue Recognition for Sales

question 85

Multiple Choice

Which of the following is true regarding revenue recognition for sales taxes, when reporting in the government-wide statements?

• A) Assets are recognized when the underlying exchange retail sale) has occurred or when resources are received, whichever occurs first.
• B) Revenues are recognized when the underlying exchange retail sale) has occurred.
• C) Both of the above are true.
• D) Neither of the above is true.

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Definitions:

Disclosure of Information

The process by which information is made available or disclosed to the public or to specific parties.

Trade Secret

Confidential business information that provides a competitive edge, such as formulas, practices, processes, designs, instruments, or patterns.

Chronic Arthritis

A long-term inflammatory disease that causes pain, stiffness, and swelling in the joints, often leading to reduced mobility and function.

Intellectual Property

Legal rights protecting the creations of the mind, such as inventions, literary and artistic works, designs, and symbols.