Revenue Is Properly Recognized

question 214

Multiple Choice

Revenue is properly recognized:

• A)When the customer makes an order.
• B)Only if the transaction creates an account receivable.
• C)At the end of the accounting period.
• D)Upon completion of the sale of goods or when services have been performed and the business obtains the right to collect the sales price.
• E)When cash from a sale is received.

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Definitions:

Legitimate Lawsuit

A legal action based on valid claims and supported by evidence, which is brought forth in good faith.

Duress

A condition where a person performs an act as a result of violence, threat, or other pressure against the person, impacting the validity of consent in a legal contract.

Undue Influence

Unfair manipulation or pressure exerted on a person, overriding their free will or judgment, often in legal or financial contexts.

Assertion

A confident and forceful statement of fact or belief, made without needing proof.