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:

Communicate Well

The ability to convey information, ideas, or feelings clearly and effectively through various forms of communication.

Listening Habits

Practices or behaviors people adopt when receiving auditory information, influencing how well they understand and respond to that information.

Poor Listening

The inability to effectively understand or interpret the message being communicated by others.

Filtering

A method listeners use to hear only what they want to hear, which may result in failing to receive messages correctly.