The Revenue Principle States That Revenue Should Be Recognized at a Point

question 33

Multiple Choice

The revenue principle states that revenue should be recognized at a point when

• A) an exchange transaction involving goods and services has occurred and the earnings process is essentially complete.
• B) an order for shipment of a definite amount of merchandise has been received.
• C) a contract between buyer and seller has been signed by both parties.
• D) the seller has shipped merchandise to a customer under the terms that the customer need not pay for the merchandise until it is sold.

---

Definitions:

Unique Language

A distinctive system of communication, often characteristic of a particular group or field, enabling nuanced expression of ideas and concepts.

Ontological Level

Refers to the branch of metaphysics dealing with the nature of being and existence at the most fundamental level.

Level of Discourse

The degree of complexity, formality, or depth in conversation or discussion, often varying depending on the context or audience.

Culture of Care

A shared set of values and practices within an organization that prioritizes compassion, respect, and support in the provision of care.