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:

Process Cost System

An accounting system used to track and allocate costs of production by processes or departments, commonly used in industries where goods are produced in a continuous process.

Advertising Company

A business specializing in creating, planning, and handling advertising and sometimes other forms of promotion for its clients.

Chemical Company

A business entity that specifically focuses on the manufacturing, research, and sale of chemicals and chemical-based products.

ABC Philosophy

Stands for Activity-Based Costing, a philosophy that allocates overhead and indirect costs to specific activities, leading to more accurate product or service costing.