Under the Deposit Method

question 133

Multiple Choice

Under the deposit method

• A) the seller recognizes revenue or income on the receipt of cash.
• B) a company receives cash from the buyer before it transfers the goods or property.
• C) the buyer reports the property as an asset on its balance sheet.
• D) the seller has performed on the contract and a legitimate claim exists.

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Definitions:

Total Tax Revenue

The aggregate sum of money collected by the government from various taxes, contributing to public budget and expenditure.

Accompanying Graph

A visual representation that is provided alongside textual information or data to illustrate trends, patterns, or relationships more clearly.

Tax

A compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization to fund government spending and various public expenditures.

Sellers

Individuals or entities that offer goods or services for sale in the marketplace, engaging with buyers to complete transactions.