The term, "realization," in revenue recognition refers to which of the following?
A) The entity has completed, or substantially completed, the activities it must perform to be entitled to the revenue benefits.
B) The product or service has been exchanged for cash, claims to cash, or an asset that is readily convertible to a known amount of cash or claims to cash.
C) The entity has received an irrevocable order for goods or services.
D) Cash has been received with an irrevocable order for goods or services.
E) None of the above.
Correct Answer:
Verified
Q1: Most entities satisfy the accounting criteria for
Q3: Under most circumstances, in order to recognize
Q4: Recognition of revenue in accrual accounting requires:
A)that
Q6: An item that cost $270 is sold
Q9: Which of the following accounts/captions are not
Q11: Revenue may be recognized:
A) from the sale
Q12: In the statement of cash flows, depreciation
Q14: The first caption in most income statements
Q15: The gross profit ratio is useful to
Q17: Most entities satisfy the accounting criteria for
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents