Which of the Following Is Not Required for the Recognition

question 1

Multiple Choice

Which of the following is not required for the recognition of revenue?

• A) Receipt of cash by the seller at the time of sale.
• B) Seller must receive an item ultimately realizable in cash, noncash resources, or claims to cash.
• C) The earnings process must be essentially complete.
• D) The transaction must create a measurable financial statement element which fulfills the definition of a revenue.

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Definitions:

Books

Physical or electronic publications consisting of written, printed, or illustrated work bound together for reading or study.

Inventory Cost

The total cost associated with holding and managing inventory, including storage, insurance, and obsolescence.

Building

A structure with a roof and walls, such as a house or factory, used for living, working, storage, or other purposes.

Scarce Resources

Resources that are limited in availability and cannot satisfy all wants and needs due to their limited supply.