Identify the Condition(s)that Must Exist for a Sale and the Related

question 147

Multiple Choice

Identify the condition(s) that must exist for a sale and the related receivable to be recognized.

• A)Collection of cash is probable.
• B)The company must have collected cash from at least one previous sale to the customer.
• C)Goods or services have been provided to the customer.
• D)Two of the other answers are conditions that must exist.

---

Definitions:

Embraced Capitalism

The process of adopting capitalist economics and practices, characterized by private ownership, profit motive, and market competition.

Central Planning

An economic system where the government makes all decisions on the production and distribution of goods and services, aiming to control the economy.

Standard of Living

The degree of wealth and material comfort available to a person or community, measured by factors such as income, quality of housing, and access to services.

Rural Areas

Regions characterized by low population density and vast open spaces, often dominated by agricultural work and less developed infrastructure.