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:

Office Supplies

denotes consumable items like pens, paper, and printer ink that are used in an office setting for daily operations.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from the revenue earned from sales.

Sales Expense

Costs directly associated with the selling of goods or services, typically including advertising, sales staff salaries, and commissions.

Net Sales

The amount of revenue a company generates from its operations after deducting returns, allowances for damaged or missing goods, and discounts.