The Rule That (1) Requires Revenue to Be Recognized at the Time

question 99

Multiple Choice

The rule that (1) requires revenue to be recognized at the time it is earned, (2) allows the inflow of assets associated with revenue to be in a form other than cash, and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services, is called the:

• A) Measurement (Cost) principle.
• B) Objectivity principle.
• C) Business entity assumption.
• D) Going-concern assumption.
• E) Revenue recognition principle.

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Definitions:

Factions

Subgroups within a larger group that have distinct interests or viewpoints, often causing division or conflict.

Contact Hypothesis

A theory suggesting that interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Pettigrew

Thomas F. Pettigrew is a social psychologist known for his research on racism, intergroup contact theory, and social identity.

Recreational

Activities or experiences engaged in for pleasure, relaxation, or leisure.