Revenue Recognition Means That

question 19

Multiple Choice

Revenue recognition means that:

• A) revenue is not recorded until payment by the customer.
• B) the recording of expenses is delayed until the related revenue has been earned.
• C) revenue is recorded when earned.
• D) revenue when a deposit is received.

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Definitions:

Michael Hammer

An American engineer, management author, and business consultant known for his work on reengineering business processes.

Break Even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.

Process Reengineering

The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance.

Michael Hammer

A pioneer of business process reengineering, known for his work on improving business processes to enhance competitiveness.