Which of the Following Is a Definition of Revenue That

question 28

Multiple Choice

Which of the following is a definition of revenue that clearly represents an asset-liability approach?

• A) Revenue results from the sale of goods and rendering of services and is measured by the charge made to customers, clients, or tenants for goods and services furnished to them.
• B) Revenue represents gross increases in assets and gross decreases in liabilities measured in conformity with generally accepted accounting principles that result from those types of profit-directed activities.
• C) Revenue should be identified with the period during which the major economic activities necessary to the creation and disposition of goods and services has been accomplished.
• D) Revenues are the inflow or other enhancements of assets of an entity or settlement of its liabilities (or a combination of both) during a period from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.

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Definitions:

Permanent Spanish Colony

A territory in the Americas, Africa, Asia, or Oceania that was settled and governed by Spain as a part of its empire indefinitely or until independence.

St. Augustine, Florida

A city in Northeast Florida and one of the oldest continuously inhabited European-established settlements in the continental United States, founded in 1565 by Spanish explorers.

Jamestown, Virginia

The first permanent English settlement in North America, founded in 1607, serving as the capital of the Colony of Virginia for several decades.

New France

New France was the area colonized by France in North America from the 16th to the 18th century, encompassing parts of what are now Canada, the United States, and the Caribbean.