What Is the Amount of Revenue Recognized in the Income

question 108

Multiple Choice

What is the amount of revenue recognized in the income statement by a company that sells goods to customers?

• A)The cash collected from customers during the current period.
• B)Total sales,both cash and credit sales,for the period.
• C)Total sales minus beginning amount of trade receivables.
• D)The amount of cash collected plus the beginning amount of trade receivables.

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Definitions:

Equity Instrument

is a financial instrument that evidences ownership interest in an entity, such as shares of common stock.

Exit Price

The amount that could be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Valuation Techniques

Methods used to estimate the value of an asset, liability, or company, incorporating various financial models and approaches.

Non-recurring Measurements

Financial assessments that are unusual or infrequent and not expected to happen often in the future.