Enterprise and Internal Service Funds Should Recognize Revenues When They

question 35

Multiple Choice

Enterprise and internal service funds should recognize revenues when they are

• A)received in cash.
• B)available and earned.
• C)measurable and earned.
• D)measurable and available.

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Definitions:

Practical Consequences

Real-life effects or outcomes that follow from a specific action or decision, often considered in decision-making processes.

Partner

An individual or entity who shares ownership in a business venture and is liable for its operations and financial outcomes.

Written Agreement

A legally binding contract that has been documented in writing between two or more parties.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and proportions of ownership among partners in a partnership.