Using Accrual Accounting, Revenue Is Recorded and Reported Only

question 96

Multiple Choice

Using accrual accounting, revenue is recorded and reported only:

• A) when cash is received without regard to when the services are rendered.
• B) when the services are rendered without regard to when cash is received.
• C) when cash is received before services are rendered.
• D) if cash is received after the services are rendered.

---

Definitions:

Consumer Surplus

The variance between the sum consumers are willing to pay for a product or service and the actual payment made.

Single-Price Monopolist

A monopolistic firm that offers its product or service at a single price to all its consumers, without price discrimination.

Price Discrimination

A pricing strategy where similar goods or services are sold at different prices to different groups of people.

Ethnic Group

A community or population made up of people who share a common cultural background, ancestry, or social experience.