Which of the Following Is NOT a Criterion That Must

question 54

Multiple Choice

Which of the following is NOT a criterion that must be met before revenue is considered realized (or realizable) and earned?

• A) Delivery has occurred or services have been provided.
• B) The seller's price to the buyer is fixed and determinable.
• C) Collection is possible.
• D) Persuasive evidence of an arrangement exists.

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Definitions:

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Marginal Cost

The cost of producing one additional unit of a product or service.

Output

The total amount of goods and services produced by an economic system, company, or sector within a certain period.