When Revenue Is Earned Before the Receipt of Cash,an Adjustment

question 72

True/False

When revenue is earned before the receipt of cash,an adjustment that increases a receivable and decreases a liability account is recorded.

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Definitions:

Sales Transactions

The process of exchanging goods or services for money or other assets, recorded by businesses as revenue.

Asset Turnover Ratio

A financial metric indicating how efficiently a company utilizes its assets to generate sales revenue.

Fiscal Period

A defined time period used for financial reporting and budgeting, typically a year, quarter, or month.

Accounts Receivable

Amounts owed to a company by customers for goods or services that have been delivered or used but not yet paid for.