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:

Occupational Hazard

Risks or dangers that are inherent to a specific job or workplace, potentially causing injury or illness to employees.

Spillover

Stress experienced at work or in the family is carried over into the other domain.

Self-Estrangement

A psychological state in which individuals feel disconnected or alienated from their own self or identity.

Assembly Line

An assembly line is a manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.