ETH 557 FINAL EXAM| GRADED A+

ETH 557 FINAL EXAMIn 2003, FASB and IASB met and established four criteria for establishing revenue recognition. To recognize revenue, which of the following conditions must be present? A change in assets has occurred and can be appropriately measured. Payment for the sale must be received prior to recognizing the revenue. The product or deliverable, in the case of a service business, has been received by the customer. A promise to deliver has been established. 2 Failure to provide any care in fulfilling a duty owed to another is called gross negligence constructive fraud breach of contract negligence 3 Which of the following is a fundamental characteristic of the market system? Unselfish behavior Central planning by government Government-set wages and prices Property rights