Which of the Following Situations Would Require the Recognition of Revenue

question 1

Multiple Choice

Which of the following situations would require the recognition of revenue to be deferred?

• A)when the economic reality of a transaction represents a sale, even though title has not passed to the buyer
• B)when the realizability of the receivable from a sale is not reasonably assured
• C)when the risks of ownership have been transferred to the buyer
• D)when the benefits of ownership have been transferred to the buyer

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Definitions:

Christmas Tree Shop

A retail store specializing in holiday decorations, particularly those related to Christmas.

Christmas Gifts

Items given to friends, family, and others as presents during the Christmas holiday season, often symbolizing affection and goodwill.

Time Utility

The economic value added to products or services by making them available at a convenient time for consumers when they are needed or wanted.

Dick's Sporting Goods

An American sporting goods retail company offering a wide range of sports equipment, apparel, and footwear.