1. Under the general rule of revenue recognition, revenue is recognized when a marketability and market price are assured. b. a contractual agreement exists, and cash collection is assured. C./ all related expenses have been incurred. the earnings process is complete, and a valid promise of payment has been received 2. Which of the following is NOT an acceptable basis for the recognition of expenses? Cal Direct matching 6. Cash disbursement C. Immediate recognition d. Systematic and rational allocation 3. On a multiple-step income statement, gains or losses on sale of equipment would be shown a. before gross profit on sales. b) after gross profit on sales but before income from continuing operations. after income from continuing operations but net income. d. after income taxes expense but before net income. 4. A single-step income statement is a format that a compares the current year's income with last year's income. b. recognizes subtotals at interntediate stages such as gross margin. combines revenues and gains and subtracts from them expenses and losses, Kesulting in income from operations. d. reports sales revenue, cost of goods sold, gross margin, and all other expenses. 5. When a business segment is discontinued during the year, the gain or loss on disposal a. is reported as an investment item. b. should include only the loss or income from operating the discontinued segment for the current period. excludes only the gain or loss on disposal of the segment. should be shown net of applicable income taxes