What Criteria Must Sales Transactions Meet in Order for the Seller

question 103

Multiple Choice

What criteria must sales transactions meet in order for the seller to recognize revenues before collecting cash?

• A)The revenues must be earned (the firm must have achieved substantial performance).
• B)The amount to be received must qualify as an asset (there must be a future economic benefit and the amount must be measured with sufficient reliability).
• C)The firm must have a reasonable expectation that it will collect the amount owed from the customer.
• D)all of the above
• E)none of the above

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Definitions:

Intentional

Actions or behaviors that are done with purpose or deliberation.

Aggression

Behavior aimed at causing harm or injury to others, either physically or psychologically.

Instrumental Aggression

Aggressive behavior that is intentional and planned, used as a means to achieve a specific goal.

Other Goal

A target or objective that a person aims to achieve that is external to their personal desires or needs, often involving social or communal aims.