If a Company Is Using the Accrual Method of Accounting

question 81

Multiple Choice

If a company is using the accrual method of accounting, when is revenue recorded?

• A)When cash is received, before the completion of the services
• B)When cash is received, 30 days after the completion of the services
• C)When cash is received, even though services may be rendered at a later date
• D)When services are rendered, even though cash may be received at a later date

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Definitions:

Animal Waxes

Waxy substances produced by animals, often used for protection or waterproofing.

Fatty Acid

Long chain hydrocarbons with a terminal carboxyl group, which are components of many types of lipids (fats and oils).

Alcohol

A compound consisting of carbon, hydrogen, and oxygen, commonly used in beverages, antiseptics, and fuels.