Under the Realization Principle, Revenue Should Not Be Recognized Until

question 79

Multiple Choice

Under the realization principle, revenue should not be recognized until the earnings process is deemed virtually complete and:

• A) Revenue is realized.
• B) Any receivable is collected.
• C) Collection is reasonably certain.
• D) Collection is absolutely assured.

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Definitions:

Utilitarians

Adherents of utilitarianism, a moral philosophy that advocates for actions that maximize overall happiness or minimize overall suffering.

Ethical Choices

involve decisions that align with one's moral principles, often considering the broader implications for society and the environment.

Objectivity

The practice of being unbiased and impartial, especially in the evaluation of information or in decision-making.

Nonparticipation

Refers to choosing not to take part in social, political, or formal activities or processes.