At What Point Would You Expect Revenue from Sales of Software

question 48

Multiple Choice

At what point would you expect revenue from sales of software by a computer store to be recognised?

• A) During production
• B) On completion of production
• C) At point of sale or delivery
• D) When cash is received

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Definitions:

Pension Plan

A retirement plan that requires an employer to contribute to a pool of funds set aside for a worker's future benefit.

Cost-of-Living Adjustment

An increase in income or benefits to match the rise in the cost of living, helping individuals maintain their purchasing power.

Salary

A fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Tax-Deferred Account

A savings account or investment option where taxes on the principal and/or earnings are delayed until the investor withdraws the funds.