$7.$

In determining when revenue is recognized, what two conditions must be satisfied according to the realization concept?

Revenue must be collected and credited.

Revenue must be earned and realized.

Revenue must be credited and paid for.

Revenue must be earned and collected.

In determining when revenue is recognized, what two conditions must be satisfied according to the realization concept?

Revenue must be collected and credited.

Revenue must be earned and realized.

Revenue must be credited and paid for.

Revenue must be earned and collected.

Woodridge Companies purchased a new machine that was on sale for $$100,000.$ The CEO$$s brother installed the machine and charged Woodridge $$10,000.$ If the regular price of the machine is $$110,000$ and the cost to install it should have been $$20,000,$ how should Woodridge record the value of the asset on their balance sheet?

$$130,000$

$$120,000$

$$110,000$

$$100,000$

Choose the option to correctly complete the following sentence.

Schmidt Industries received cash from a customer for a product to be delivered next month. According to the realization concept this revenue has been

earned but not realized.

realized but not earned.

earned and realized.

neither earned nor realized