Revenue Is Properly Recognized

question 200

Multiple Choice

Revenue is properly recognized:

• A) When the customer's order is received.
• B) Only if the transaction creates an account receivable.
• C) At the end of the accounting period.
• D) Upon completion of the sale 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:

Inductance

A property of an electrical conductor by which a change in current flowing through it induces an electromotive force (voltage) in both the conductor itself and in any nearby conductors by mutual inductance.

Auxiliary Start

Auxiliary start refers to additional methods or devices used to start an electric motor or engine besides the primary starting system, enhancing reliability or performance.

Run Winding

The primary winding in a motor that is connected during the run operation, responsible for creating the magnetic field that turns the motor.