Revenue Is Earned When ________

question 124

Multiple Choice

Revenue is earned when ________.

• A) there is a binding agreement to provide goods or services
• B) the journal entry to record revenue has been prepared
• C) the business has received cash from the customer
• D) (or as) the business satisfies each performance obligation

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Definitions:

Incentive Theories

Theories in psychology focused on understanding how external rewards motivate behaviors and drive human actions.

Drive Theories

Psychological theories suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Motivation

The psychological factors or driving forces that compel or prompt an individual to act in a certain manner.

Homeostatic

Pertaining to homeostasis, which is the process by which living organisms maintain a stable internal environment despite changes in external conditions.