The Following Is a Diagram of the Earnings Cycle as Presented

question 58

Multiple Choice

The following is a diagram of the earnings cycle as presented by Coombes and Martin (1982) . Because of uncertainty and depending on which measurement model is being applied,revenue recognition will take place at a limited number of points in the earnings cycle.In traditional historical-cost accounting,in most cases,at which point in the cycle above have revenues been recognised?

• A)Point 5
• B)Point 8
• C)Point 7
• D)Point 9

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Definitions:

Awareness

Knowledge or perception of a situation or fact.

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in the body's fight-or-flight response.

Hydrocortisone

A steroid hormone produced by the adrenal gland, involved in the body's response to stress, metabolism, immune response, and inflammation regulation.

Blood Stream

The flowing blood within the circulatory system of the body.