The Rule That (1)requires Revenue to Be Recognized at the Time

question 84

Multiple Choice

The rule that (1) requires revenue to be recognized at the time it is earned,(2) allows the inflow of assets associated with revenue to be in a form other than cash,and (3) measures the amount of revenue as the cash plus the cash equivalent value of any noncash assets received from customers in exchange for goods or services is called the:

• A) Going concern principle.
• B) Cost principle.
• C) Revenue recognition principle.
• D) Monetary unit principle.
• E) Business entity principle.

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Definitions:

Enemy

An individual, group, or entity that is actively opposed or hostile to another.

Executioner

Typically, an individual who carries out a death sentence; however, in a business context, it might metaphorically refer to someone who finalizes or terminates projects.

Stock-For-Stock Exchange

A type of corporate merger or acquisition where shares of one company are exchanged for shares of another.

Share Price

Share price refers to the current market price of a single share of a company's stock, representing the value investors are willing to pay for a piece of the company.