Companies Recognize Revenue Only When

question 105

Multiple Choice

Companies recognize revenue only when:

• A) A contract is reasonably likely to exist.
• B) A performance obligation is designated in a written contract.
• C) A written contract is in place and payment is variable.
• D) Control over goods or services has been transferred from the seller to the customer.

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Definitions:

Landlords

Property owners who rent out real estate to tenants under a lease agreement.

Tort Liability

Legal responsibility arising from a civil wrong not based on a contractual obligation, leading to compensation for damages or injuries.

Assignment

is the transfer of rights, property, or obligations from one party to another under a contract.

Transfers

The act of moving or passing assets, property, titles, or rights from one person to another.