When Does the All-Events Test Under the Accrual Method Require

question 53

Multiple Choice

When does the all-events test under the accrual method require the recognition of income from the sale of goods?

• A) when the title of the goods passes to the buyer.
• B) when the business receives payment.
• C) when payment is due from the buyer.
• D) the earliest of these three dates.
• E) None of these.

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Definitions:

Fraction

A numerical quantity that is not a whole number, represents a part of a whole, typically written with a numerator and a denominator separated by a slash.

Consumers

Individuals or households that use goods and services generated within the economy.

Import Quota

A restriction set by the government on the amount or cost of products allowed to be brought into a country from abroad.

Tariff

A tax imposed by a government on goods and services imported from other countries.