Revenue Is Properly Recognized

question 161

Multiple Choice

Revenue is properly recognized:

• A)When the customer's order is received.
• B)Only if the transaction creates an account receivable.
• C)At the end of the accounting period.
• D)Upon completion of the sale or when services have been performed and the business obtains the right to collect the sale price.
• E)When cash from a sale is received.

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Definitions:

Surveying

The act of examining and recording the features of a piece of land to accurately define its boundaries and create maps or plots.

Observing

The act of carefully watching or monitoring something or someone to gather data or information.

Interviewing

A method used to gather information, opinions, or data from individuals through direct questioning.

Revising

The process of reviewing and altering a piece of writing to improve its clarity, coherence, and overall effectiveness.