The revenue principle states that revenue should be recognized at a point when
a. an exchange transaction involving goods and services has occurred and the earnings process is essentially complete.
b. an order for shipment of a definite amount of merchandise has been received.
c. a contract between buyer and seller has been signed by both parties.
d. the seller has shipped merchandise to a customer under the terms that the customer need not pay for the merchandise until it is sold.
A
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In giving advice to employees of an American firm entering a joint venture with a company in another country, which of the following would you recommend?
A) Remember that you may need to take responsibility for more rather than sharing responsibilities. B) Be prepared to work with others who may be very dissimilar to you. C) Focus on the technical issue or task at hand and avoid wasting time on social ties. D) Create a position of superiority as an American.
Importers will often place goods in a retail outlet with the understanding that the shop will pay the importer only after the goods have been sold. This arrangement is known as
a. abeyance. b. consignment. c. factoring. d. channeling.