Revenue Is Properly Recognized

question 130

Multiple Choice

Revenue is properly recognized:

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

Identify the circumstances under which the equity method of accounting is appropriate.

Calculate the investment account changes due to investee's net income, dividends, and excess amortization.

Understand how to account for changes in ownership percentages and their impact on the equity method.

Recognize how intra-entity transactions affect the investment account under the equity method.

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Definitions:

Developmentally Appropriate

Activities or educational practices that are suited to the age, individual needs, and developmental stage of children.

Toddler

A young child, typically between the ages of one and three years old, who is in the developmental stage of learning to walk, talk, and acquire basic skills.

Preschool

An educational establishment or learning environment offering early childhood education to children before they begin compulsory education at primary school.

Emotional Intelligence

The ability to perceive emotions, to identify and understand their meaning, to integrate them with other kinds of cognition, and to manage them.