Which of the following illustrates how the recognition of revenue earned on account affects the financial statements? 
Definitions:
Custodial Services
These are services related to the maintenance and cleaning of buildings and facilities.
Square Feet
A unit of area measurement equal to a square measuring one foot on each side.
Step-down Method
An approach in accounting used to allocate indirect costs to relevant cost objects by sequentially distributing service departments' costs to production departments and other service departments.
Labor Hours
A measure of the amount of work output or effort, typically quantified in hours, provided by employees or workers.
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