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:

Total Benefit

The entire value or advantage received from consuming a good or service.

Marginal Benefit

The increased happiness or advantage someone gets from using another unit of a certain good or service.

Marginal Benefit

The additional satisfaction or utility gained from consuming or producing one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product or service, which varies depending on the level of production.