The Event That Triggers Revenue Recognition for the Sale of Goods

question 181

Multiple Choice

The event that triggers revenue recognition for the sale of goods is the:

• A) date a contract is signed.
• B) date cash is received.
• C) transfer of control of the goods to the purchaser.
• D) completion of the services.

Explore the relevance and application of legal concepts to various roles and functions within a business setting.

Identify the types and sources of law in the United States.

Understand the principle of stare decisis and its importance in the legal system.

Distinguish between criminal and civil law.

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Definitions:

Accounts Payable

The amount of money a company owes to its suppliers or creditors for goods and services purchased on credit.

Return On Assets

A financial ratio indicating how profitable a company is relative to its total assets, measuring efficiency in using assets to generate earnings.

Earnings Before Interest And Taxes

A financial metric indicating the profitability of a business before accounting for interest and tax expenses.

Excess Capacity

The situation in which a facility or operation can produce more than is being demanded by its customers.