The Following Is a Diagram of the Earnings Cycle as Presented

question 36

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:

Export Demand

Refers to the desire or requirement for a country's goods or services by another country.

American Agriculture

The sector of the US economy that deals with the production, processing, and distribution of food, fiber, and products derived from plants and animals.

Labor Force

Persons 16 years of age and older who are not in institutions and who are employed or are unemployed and seeking work.

Employed

refers to individuals who are currently working for pay or profit, or are engaged in any activity that generates income.