Revenue Is Earned When the Business Has ________

question 165

Multiple Choice

Revenue is earned when the business has ________.

• A)entered into an agreement with the customer about the goods or services to be delivered
• B)prepared a journal entry to record revenue
• C)received cash from the customer before goods or services are delivered
• D)delivered a good or service to the customer

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Definitions:

Amortization Period

The length of time it takes to pay off a loan or mortgage in full with regular payments that cover both principal and interest.

Compounded Monthly

A method of calculating interest where the interest earned each month is added to the principal, so the balance doesn't merely grow; it grows at an increasing rate.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Loan

Money that is borrowed, typically from a bank or financial institution, that is expected to be paid back with interest.