The Recognition Principle States That

question 106

Multiple Choice

The recognition principle states that:

• A)costs should be recorded on the income statement whenever those costs can be reliably determined.
• B)costs should be recorded when paid.
• C)the costs of producing an item should be recorded when the sale of that item is recorded as revenue.
• D)sales should be recorded when the payment for that sale is received.
• E)sales should be recorded when the earnings process is virtually completed and the value of the sale can be determined.

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Definitions:

OTE

An output energize instruction used in PLC programming to control the on/off status of a bit.

XIC

Examine If Closed, a command in ladder logic programming that checks if a specific input or point in a control system is in an ON state, signifying an electrical circuit is complete.

OTD

OTD stands for "On-Time Delivery," a key performance indicator measuring the success rate of delivering services or goods within the agreed timeframe.

XIO

Represents an "Examine if Open" instruction in ladder logic programming, used to check if a specified condition, such as a switch being open, is met.