a........................................................................................
Answer:
D
Explanation:
Pure competition means *many* companies/people are going at it for the same/identical thing. C would have been a good answer if it wasn't only two companies.
Answer:
The revenue should not be recognized because of the unusual and subjective terms under which the buyer has the right to return the product.
Explanation:
If a buyer of goods has the right to return a product, the transaction is considered a sale with a right of return. When regular sales are made under these terms and there is a reasonable basis for estimating returns, revenue from the sale ought to be recognized and an allowance for returnsshould be established.
However, when the rate of returns cannot be reasonably estimated, revenue is not recognized until the right of return expires. Even though the goods were shipped in 2015, until the buyer accepts the goods or the right to return them expires, revenue would not be recognized.
