If Firms Expect to Receive Cash More Than One Year

question 47

Multiple Choice

If firms expect to receive cash more than one year after the time of recognizing revenue, they measure revenues at the

• A)future value of the amount of cash they expect to receive.
• B)present value of the amount of cash they expect to receive.
• C)fair value.
• D)aggregate total of the amount of cash they expect to receive.
• E)net realizable value.

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Definitions:

Excise Tax

A tax levied on specific goods or services, such as tobacco, alcohol, or gasoline, at the point of manufacture or distribution.

Price Elasticity

A measure of how much the demand or supply of a product changes in response to a change in its price.

Incidence

The allocation or impact of an economic activity or policy, especially in terms of who bears the cost or receives the benefits.

Excise Tax

A tax imposed on specific goods, services, or activities, often aimed at discouraging their use or raising revenue for government.