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.

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Definitions:

Consumers

Individuals or groups who purchase goods and services for personal use and are the final users in the distribution process.

Employees

Individuals who work for a company or organization and are typically compensated with wages or salaries.

Code Violations

Instances where building practices or conditions do not comply with established regulations or standards set by local, state or national codes.

Child Labor

The employment of children in any work that deprives them of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially, or morally harmful.