Which of the Following Is One of the Key Criteria

question 31

Multiple Choice

Which of the following is one of the key criteria that must normally be met in order that revenue may be recognised?

• A) All costs of generating the revenue must have been paid in full.
• B) The amount of revenue can be precisely measured in dollar terms.
• C) Cash must have been received.
• D) The economic benefit will probably flow to the seller.

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Definitions:

Institutional Investors

Organizations that invest large sums of money into securities and assets, including mutual funds, pension funds, insurance companies, and endowments.

Mutual Funds

Investment vehicles made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Pension Funds

Investment pools that pay for workers' retirements. Contributions are made by employers, employees, or both, and the funds are invested on the employees' behalf.

Secondary Market Transaction

The buying and selling of existing financial securities among investors or traders, which occurs after the initial issuance of the securities.