No Writing Is Required for a Service Contract That Can

question 36

True/False

No writing is required for a service contract that can be performed within one year after the date of the agreement.

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Definitions:

Provided

Refers to the information or items that have been supplied or made available.

Accrual Basis

An accounting method where revenues are recorded when earned and expenses are recorded when incurred, regardless of when cash is exchanged.

Cash Received

Money that a business or individual has taken in, whether from transactions, investments, or other sources.

Matching Concept

A fundamental principle in accounting that ensures expenses are matched with the revenues they generate in the same period.