Which of the Following Statements Is False

question 111

Multiple Choice

Which of the following statements is false?

• A) A liability is created when cash is received prior to delivery of the goods or services.
• B) Revenue is recognized at the time of delivery of the goods or services if cash is received.
• C)Revenue is not recognized at the time of delivery of goods and services if cash is received after delivery of the goods and services.
• D)Collecting cash after delivery of a good or service does not create revenue on the income statement at the date of collection.

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Definitions:

Accumulated Depreciation

The overall depreciation cost that has been allocated to a fixed asset over the span of its useful life.

Patent Rights

Legal protections granted to inventors, giving them exclusive rights to produce, use, and sell their inventions for a limited period.

Amortization

The process of spreading out a loan or an intangible asset's cost over its useful life.

Useful Life

The estimated period over which an asset is expected to be usable, providing economic benefits to its owner.