Which Is Not an Application of Revenue Recognition

question 157

Multiple Choice

Which is not an application of revenue recognition?

• A)Recording revenue as an adjustment on the last day of the accounting period.
• B)Recording cash from an established customer for services to be performed over the next three months.
• C)Billing customers on June 30 for services completed during June.
• D)Receiving cash for services performed.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, stabilizing the market.

Efficiency

A measure of how well resources are used to achieve a goal, typically minimizing waste and cost while maximizing output or outcomes.

Least Possible Cost

The minimum expense required to achieve a particular economic objective.

General Equilibrium

A situation in which supply and demand are balanced across all markets in the economy.