Under the Realization Principle, Revenue Should Not Be Recognized Until

question 79

Multiple Choice

Under the realization principle, revenue should not be recognized until the earnings process is deemed virtually complete and:

• A) Revenue is realized.
• B) Any receivable is collected.
• C) Collection is reasonably certain.
• D) Collection is absolutely assured.

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Definitions:

Proportion

Refers to the ratio of a part or portion of the total count, quantity, or amount in a given context.

Freshmen

Students in their first year of study at a high school or university.

Standard Error

A statistical measure that shows the precision of a sample's mean estimate of a population mean.

Sampling Variability

The variability of sample statistics over different samples of the same size from the same population, due to chance.