Are Prepaid Amounts Received from Customers Treated as Revenue at the Time

question 129

Multiple Choice

Are prepaid amounts received from customers treated as revenue at the time of receipt? Why or why not?

• A)Yes they are treated as revenue at the time of receipt because the company has access to the cash.
• B)No the amount of revenue cannot be adequately determined until the company completes the work.
• C)Yes The intent of the company is to perform the work and the customer is confident that the services will be completed.
• D)No revenue cannot be recognized until the work is performed.

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Definitions:

Biological Parents

The individuals from whom one inherits their genetic traits, typically referred to as the mother and father.

Canalized

A term referring to traits that are strongly influenced by genetic factors and less affected by environmental conditions.

Species-Typical Characteristics

Traits or behaviors that are common and normative within a particular species.

Language Acquisition

The process by which humans acquire the capacity to perceive, produce, and use words to understand and communicate.