Which of the Following Best Describes Revenue

question 7

Multiple Choice

Which of the following best describes revenue?

• A)Resources of a company.
• B)Sales of goods and services to a customer.
• C)Cash received from a customer.

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Definitions:

Diluted Earnings Per Share

A metric that calculates a company’s earnings per share considering all potentially convertible securities.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock and usually receives dividends before common shareholders.

Convertible

Refers to a security, usually a bond or a preferred stock, that can be converted into a specified number of shares of common stock.

Common Stock

A type of security that signifies ownership in a corporation, entitling the shareholder to a share of the corporation's profits and assets.