The Term Revenue Recognition Conventionally Refers to

question 3

Multiple Choice

The term revenue recognition conventionally refers to

• A)The process of identifying transactions to be recorded as revenue in an accounting period.
• B)The process of measuring and relating revenue and expenses of an enterprise for an accounting period.
• C)The earning process that gives rise to revenue realization.
• D)The process of identifying those transactions that result in an inflow of assets from customers.

---

Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, representing the percentage of income paid in taxes.

Proportional Tax

A tax system where the rate of taxation is the same for all taxpayers, regardless of income or wealth.

Payroll Tax

Duties levied on both employers and employees, usually reflecting a portion of the payroll expenses.

Per-hour Wage

The sum of money an employee receives for working one hour.