When Services Are Provided,it Is Customary to Recognise Revenue When

question 49

Multiple Choice

When services are provided,it is customary to recognise revenue when the:

• A) supplier agrees to provide the service
• B) service is provided
• C) service is paid for
• D) warranty period expires.

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Definitions:

Corporate Governance

Rules for corporate organization and conduct; rules and practices relating to how corporations are governed by management, directors, and shareholders.

Wholly Owned Subsidiary

A company whose entire stock is held by another company, making it fully controlled by the parent company.

Share Repurchase

A program by which a company buys back its own shares from the marketplace, reducing the amount of outstanding stock while potentially increasing the value of remaining shares.

Purchase Accounting Method

An accounting method used in mergers and acquisitions where the acquiring company revalues the assets and liabilities of the acquired company.