Which of the Following Two Criteria Are Required for an Entity

question 10

Multiple Choice

Which of the following two criteria are required for an entity to recognize interest as revenue?

• A)The amount of revenue can be reliably measured; the costs of the asset can be reliably measured
• B)The amount of revenue can be reliably measured; it is probable that the economic benefits of the transaction will flow to the entity
• C)It is probable that the economic benefits of the transaction will flow to the entity; the costs of the asset can be measured.
• D)The costs of the asset can be measured; the interest has accrued over one year

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Definitions:

Foreign Subsidiary

A company that is owned or controlled by another company, known as the parent company, and is located in a country different from where the parent company is situated.

Sweatshops

Work environments that have poor working conditions, violations of labor laws, and unethical treatment of workers, often with extremely low pay.

Poor Working Conditions

An environment where the safety, health, and well-being of employees are not adequately protected.

Low Wages

Compensation that is considered less than the average or standard in a specific industry or region.