The Revenue Recognition Principle Relies Only on the Principle of Receiving

question 105

True/False

The revenue recognition principle relies only on the principle of receiving cash or an asset virtually assured of being converted into cash.

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Definitions:

Grade Point Average

A numerical calculation representing the average value of the accumulated final grades earned in courses over time.

Item Analysis

A series of statistical tests and procedures that can be used to assess for homogeneity in a test.

Construct Validity

The degree to which a test accurately measures the theoretical construct or concept it is intended to measure.

Content Validity

The ability of an instrument to fully assess or measure a construct of interest by sufficiently sampling from the entire universe of items for which the instrument was designed to sample.