Which of the following terms refers to the formal recording and reporting of revenues in financial statements?
A) Full disclosure
B) Revenue recognition
C) Compliance
D) Ethical practice
E) Materiality
Answer: B
Explanation: B) Revenue recognition is the formal recording and reporting of revenues at the appropriate time. Although a firm earns revenues continuously as it makes sales, earnings are not reported until the earnings cycle is completed.
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A) enhances the effectiveness of your arguments. B) is less effective than an aggressive "hard sell." C) shows a lack of confidence, and should be avoided. D) is effective only with external audiences. E) is helpful in the body, but not in the opening or close.
A strategic-planning gap can be corrected by ________
A) changing the company's mission B) adjusting its core values C) choosing integrative growth strategies D) redefining organizational culture E) increasing resource use