The revenue recognition principle:
A. Provides guidance on when a company must recognize revenue.
B. Prescribes that a company record the expenses it incurred to generate the revenue reported.
C. Prescribes that accounting information is based on actual cost.
D. Means that accounting information reflects a presumption that the business will continue operating instead of being closed or sold.
E. Prescribes that a company report the details behind financial statements that would impact users' decisions.
Answer: A
You might also like to view...
With defensive avoidance, a manager "acts" by _______ when he or she can't find a good solution to a problem.
A. doing nothing B. doing anything to get rid of the problem C. choosing the first available alternative that involves low risk D. procrastinating, passing the buck, or denying the risk of any negative consequences E. perhaps getting the police or legal authorities involved
Some companies manufacture and sell both their own brand as well as a private-label brand. What is the greatest risk to the company by pursuing this strategy?
A) lack of cost control B) cannibalizing its own brand C) poor capacity utilization D) competition with a leading brand
The partnership is dissolved if a new partner is added to the partnership
Indicate whether the statement is true or false
Which statement regarding SELL sequence is NOT correct?
A. SELL sequence is part of essential steps within the presentation stage. B. The SELL Sequence is a great method of determining if the FAB is of interest to the buyer C. The SELL sequence should always be used by a salesperson at the closing stage D. When a question is integrated with the product's FAB, it forms the SELL Sequence. E. The SELL Sequence is an effective form of persuasive communication.