For a Business Selling Magazine Subscriptions and Preparing Financial Reports

question 25

Multiple Choice

For a business selling magazine subscriptions and preparing financial reports on a monthly basis,when should it recognise the revenue from the sale of annual subscriptions?

• A) When a customer pays the annual subscription.
• B) Monthly, on a straight-line basis over the 12 month subscription period.
• C) Evenly, from the month of payment up to the end of the current financial year.
• D) When the annual subscription period expires.

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Definitions:

Negative Views

Pessimistic perceptions or attitudes towards something or someone, often without considering positive aspects.

Self-Verification

The desire to be understood and acknowledged by others according to one's firmly held beliefs and feelings about oneself.

Induced Hypocrisy

This psychological concept involves making individuals aware of the discordance between their attitudes and behaviors to motivate them to change their behavior to align with their expressed attitudes.

Misattribution

Incorrectly identifying the source of a memory or emotion, leading to inaccurate conclusions or feelings.