Which of the Following Is a Criterion That Must Be

question 46

Multiple Choice

Which of the following is a criterion that must be met to recognize revenue from the sale of goods?

• A) The receipt of consideration to which the entity is entitled under the contract must be probable.
• B) The goods must have been delivered into the customer's physical possession.
• C) All of the contract's performance obligations must have been satisfied.
• D) It is highly probable that the buyer will pay the consideration promptly.

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Definitions:

Consumer Price Index

An index that measures the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Inflation

is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Savings

Savings refer to the portion of income that is not spent on consumption but is set aside for future use, often in a bank account or other investment vehicle.

Nominal Interest Rates

Refer to the interest rates before adjustments for inflation, representing the face value of interest paid or received.