In Which of the Following Circumstances Is Revenue NOT Earned

question 10

Multiple Choice

In which of the following circumstances is revenue NOT earned by a company?

• A) In return for goods supplied,a customer paid $1000 in cash.
• B) In return for goods supplied,a customer promised to pay $1000 later.
• C) In return for goods supplied,a customer gave the company $1000 in equipment.
• D) A customer paid $500 deposit for goods to be supplied in the next accounting period.

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Definitions:

Factory Profits

Refers to the net income generated from manufacturing operations after deducting all operational costs and expenses.

High Demand

A market condition where the desire for a product or service significantly exceeds its supply or availability.

Maximin Criterion

A decision rule used in uncertainty conditions, selecting the option with the best of the worst possible outcomes.

Uncertainty

The state of having limited knowledge about an existing condition or future outcome, making it difficult to make accurate predictions or decisions.