Revenue Should Be Recognized When

question 132

Multiple Choice

Revenue should be recognized when

• A) cash is received
• B) the service is performed
• C) the customer places an order
• D) the supplier charges an order

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Definitions:

Spillovers

Economic events in one context that have effects on a third party or in a different context, often external to the initial economic activity.

Marginal Cost

The additional cost incurred by producing one extra unit of a good or service.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.