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:

Scarce Factors

Resources that are limited in availability and are constraint to economic production.

Capital

Refers to financial assets or physical resources that are used in producing goods or providing services.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than others.

Comparative Advantage

An economic principle stating that countries or entities gain and benefit from trade when they specialize in producing goods for which they have a lower opportunity cost than their trading partners.