Although Revenue May Be Recognised at Various Points in the Revenue

question 19

Multiple Choice

Although revenue may be recognised at various points in the revenue generation sequence, it is normally recognised when:

• A) customers forward a firm order.
• B) the product is delivered to customer.
• C) the customer pays for the goods.
• D) the warranty period expires.

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Definitions:

Dividends

Portions of a company's earnings distributed to shareholders, typically in cash or additional shares.

Retained Earnings

The portion of a company's profits not distributed to shareholders as dividends but instead reinvested in the business or used to pay off debt.

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company.

Dividends

The allocation of a corporation's earnings to its shareholders, in the form of monetary distributions.