When Should a Company Recognize Revenue

question 32

Multiple Choice

When should a company recognize revenue?

• A)When delivery has occurred or services have been provided (rendered).
• B)When the price is fixed or determinable.
• C)When there is persuasive evidence of an arrangement for customer payment and collection is reasonably assured.
• D)All of the above are necessary to recognize revenue.

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Definitions:

Labour Standards Legislation

Laws and regulations that establish the minimum requirements for working conditions, such as hours of work, minimum wage, and safety standards.

Pay Equity Legislation

Laws and regulations designed to eliminate the gender pay gap by ensuring that men and women receive equal pay for work of equal value.

Human Rights Legislation

Laws enacted to protect individuals from violations of their rights by individuals, organizations, or governments.

Labour Market Constraints

External and internal factors that limit the availability, mobility, and efficiency of labour within the economy.