The Revenue Principle Requires That a Business Record Revenue When

question 108

Multiple Choice

The revenue principle requires that a business record revenue when the business:

• A)receives an order from a customer.
• B)prepares the invoice for the customer.
• C)delivers goods or services to a customer.
• D)receives payment from a customer.

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Definitions:

Savings and Loan Associations

Banks and similar entities that focus on taking in savings from depositors and providing home loans along with other types of financing.

Mortgage Loans

Loans secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty.

Installment Loans

Loans that are repaid over time with a set number of scheduled payments, commonly used for items like cars and large appliances.

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, facilitating the flow of funds in the economy, such as banks or credit unions.