Under the Revenue Recognition Principle,a Good or Service Is Considered

question 90

Multiple Choice

Under the revenue recognition principle,a good or service is considered transferred when ________.

• A) all performance obligations have been satisfied
• B) the customer obtains control of the good or service
• C) the business has received cash from the customer
• D) the transaction price has been determined

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Definitions:

Source Amnesia

Faulty memory for how, when, or where information was learned or imagined. (Also called source misattribution.) Source amnesia, along with the misinformation effect, is at the heart of many false memories.

Misinformation Effect

The phenomenon where a person's recall of episodic memories becomes less accurate due to post-event information.

Retroactive Interference

A memory phenomenon where newly learned information interferes with the recall of previously learned information.

Proactive Interference

Proactive interference occurs when older information interferes with the recall of newer information.