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.

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Definitions:

Constraints

Restrictions or limitations on the variables of a problem which define the conditions or boundaries within which a solution must be found.

Experimental Statistical Study

A research method involving the manipulation of one variable to determine if changes in one variable cause changes in another variable.

Cholera

An infectious disease caused by the bacterium Vibrio cholerae, leading to severe diarrhea and dehydration.

Polio

A viral disease that can affect nerves and lead to partial or full paralysis, largely eradicated in many countries through vaccination.