As a General Principle, Under the Accrual Basis of Accounting

question 123

Multiple Choice

As a general principle, under the accrual basis of accounting, the firm recognizes revenue when the transaction meets which of the following conditions?

• A)Revenue is recognized when there is completion of the earnings process, only.
• B)Revenue is recognized when there is receipt of assets from the customer, only.
• C)Revenue is recognized when there is completion of the earnings process and receipt of assets from the customer.
• D)Revenue is recognized when there is expiration of the warranty period, only.
• E)Revenue is recognized when there is receipt of the final payment, only.

---

Definitions:

Economic Revitalization

Efforts and policies aimed at rejuvenating areas with declining economic performance through investment and infrastructure development.

Cabinet Member

An official who heads a department of the executive branch in the government and advises the President or Prime Minister.

Frances Perkins

The first female cabinet member in U.S. history, serving as Secretary of Labor under President Franklin Roosevelt and playing a key role in New Deal legislation.

Mass Culture

The set of ideas, activities, and values that are widespread in a society, heavily influenced by media, technology, and mass communication.