41. Realization of revenue occurs whena. the item is formally recorded and reported in the financial statementsb. noncash resources are converted into cash or rights to cashc. the actual exchange of noncash resources into cashС.d. when a transaction is both realized and realizable42.A revenue recognition method that recognizes revenue before the time of sale isa. percentage-of-completionb. installmentc. cost recoveryd. point of saleС.

Realization Concept Realization concept in accounting, also known as revenue recognition principle,…

1. Realization of revenue occurs when a. the item is formally recorded and reported in the financial statements b. noncash resources are converted into cash or rights to cash c. the actual exchange of noncash resources into cash d. when a transaction is both realized and realizable

1. Realization of revenue occurs when a. the item is formally recorded and reported in the financial statements b. noncash resources are converted into cash or rights to cash c. the actual exchange of noncash resources into cash d. when a transaction is both realized and realizable

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 9GI: Give an example and explanation for each of the following differences between when revenues are...

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Question

41. Realization of revenue occurs when
a. the item is formally recorded and reported in the financial statements
b. noncash resources are converted into cash or rights to cash
c. the actual exchange of noncash resources into cash
С.
d. when a transaction is both realized and realizable
42.A revenue recognition method that recognizes revenue before the time of sale is
a. percentage-of-completion
b. installment
c. cost recovery
d. point of sale
С.

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