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:

Income Elasticity

A measure used in economics to show how the demand for a good or service changes in response to changes in consumer income.

Elapses

Refers to the passage of time or the process of something coming to an end or expiring.

Inelastic Demand

Describes a situation where the demand for a good or service changes little when its price changes.

Total Revenue

The total amount of money generated from the sale of goods or services.