Multiple Choice
When an organization asks questions such as "Why was revenue so high?", what type of activity is it performing?
65
views
3. Accrual Accounting Concepts
Revenue Recognition and Expense Recognition
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
A ____ is a source of revenue flowing into the firm.
A
dividend
B
expense
C
sale
D
liability
Verified step by step guidance1
Understand the concept of revenue: Revenue refers to the income generated from normal business operations and includes sales of goods and services.
Identify the options provided: dividend, expense, sale, and liability.
Analyze each option: A dividend is a distribution of profits to shareholders, not a source of revenue. An expense is a cost incurred during operations, not revenue. A liability is an obligation or debt, not revenue.
Recognize that 'sale' is the correct answer: Sales represent the primary source of revenue for most firms, as they involve the exchange of goods or services for money.
Conclude that the correct answer is 'sale' because it aligns with the definition of revenue flowing into the firm.
3:24mWatch next
Master Revenue Recognition Principle with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Revenue Recognition and Expense Recognition practice set
Problem sets built by lead tutorsExpert video explanations