What criteria must sales transactions meet in order for the seller to recognize revenues before collecting cash?
a. The revenues must be earned (the firm must have achieved substantial performance).
b. The amount to be received must qualify as an asset (there must be a future economic benefit and the amount must be measured with sufficient reliability).
c. The firm must have a reasonable expectation that it will collect the amount owed from the customer.
d. all of the above
e. none of the above
D
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One type of revenue is the settlement of a liability that occurs as a result of a company's primary operating activities
Indicate whether the statement is true or false
Explain the relationship between the parol evidence rule and ambiguous contracts.
What will be an ideal response?
Brainstorming generates
a. conflict. b. enthusiasm. c. ideas or solutions to a problem. d. all of these choices.
Which of the following statements regarding credit entries is true?
A. Credits decrease liability accounts. B. Credits increase asset and common stock accounts, and decrease liability accounts. C. Credits increase the common stock account. D. Credits increase asset accounts.