The Rule That (1) Requires Revenue to Be Recognized at the Time

question 119

Multiple Choice

The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services, is called the:

• A) Going-concern assumption.
• B) Cost principle.
• C) Revenue recognition principle.
• D) Objectivity principle.
• E) Business entity assumption.

---

Definitions:

Nausea

A sensation of discomfort in the stomach often accompanied by an urge to vomit, commonly experienced due to a variety of causes such as illness, medication, or motion sickness.

Addicted Newborn

A newborn suffering from withdrawal symptoms as a result of exposure to addictive substances while in the womb.

Narcotic

A drug that relieves pain and induces drowsiness, stupor, or insensibility, often used medically for pain relief but can be addictive and abused.

Withdrawal Symptoms

Physical or psychological effects experienced when reducing or discontinuing a substance that the body has become dependent on.