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

---

Definitions:

Descriptive/Correlational Research Methods

Research strategies for observing and describing behavior objectively and systematically without influencing or interfering with the study.

Practical and Ethical Reasons

Justifications or motives for actions that are based on practicality, effectiveness, and alignment with moral principles.

Naturalistic Observations

A research method used to systematically observe and record behavior in its natural environment without manipulation or control.

Case Studies

Detailed examinations of a single subject (individual, group, or event) to uncover patterns, identify causes, and derive insights.