An Accountant Records Revenue When Earned Under Which Basis of Accounting

question 50

Multiple Choice

An accountant records revenue when earned under which basis of accounting?

• A)cash-basis
• B)accrual
• C)tax
• D)financial

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Definitions:

Overhead Expenses

Costs associated with running a business that are not directly tied to producing goods or services, such as rent and utilities.

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the operations.

Markdown

A reduction from the original or retail price of goods or services, typically to stimulate sales or clear out inventory.

Invoice

A paper provided by the vendor to the purchaser detailing the goods or services rendered and the total charge.