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

question 119

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 assumption.
• B) Cost principle.
• C) Revenue recognition principle.
• D) Objectivity principle.
• E) Business entity assumption.

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Definitions:

Chimpanzees

A species of great ape native to the forests and savannahs of tropical Africa, noted for their social behaviors and intelligence.

Bonobos

A species of great ape known for its matriarchal society and complex social behaviors, closely related to chimpanzees.

Grooming

In primatology, the ritual cleaning of another animal's coat to remove parasites and other matter.

Orangutans

Great apes native to Indonesia and Malaysia, known for their intelligence, long arms, and reddish-brown hair.