The Term, "Realization," in Revenue Recognition Refers to Which of the Following

question 4

Multiple Choice

The term, "realization," in revenue recognition refers to which of the following?

• A) The entity has completed, or substantially completed, the activities it must perform to be entitled to the revenue benefits.
• B) The product or service has been exchanged for cash, claims to cash, or an asset that is readily convertible to a known amount of cash or claims to cash.
• C) The entity has received an irrevocable order for goods or services.
• D)Cash has been received with an irrevocable order for goods or services.
• E) None of the above.

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Definitions:

ATM Card

A plastic card issued by a bank that allows the cardholder to withdraw cash from automated teller machines.

Pronoun

A word used in place of a noun, representing people, places, things, or ideas, to avoid repetition and simplify sentences.

Corporate Style Guide

A comprehensive manual that outlines how a company's brand, identity, and standards are to be communicated in various mediums.

Revision

The process of reviewing, editing, and amending text or work to improve its quality or accuracy.