Which of the Following Is Not a Proper Application of the Revenue

question 104

Multiple Choice

Which of the following is not a proper application of the revenue recognition principle?

• A)Recording the sale of merchandise on credit as sales revenue.
• B)Recording rent received in advance as unearned rent revenue.
• C)Recording interest revenue when cash is collected rather than when earned.
• D)Reducing the unearned service revenue account for service revenue performed at the end of the accounting period.

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Definitions:

Number

A mathematical object used to count, measure, and label.

Categorical Syllogism

A form of deductive reasoning consisting of three propositions that are categorical in nature, presenting a relationship between a subject and a predicate.

Minor Term

in syllogistic logic, the term that appears in both the conclusion and one premise of a syllogism, but not the major premise.

Major Premise

The first premise in a syllogism, typically a general statement or proposition that asserts a universal truth or principle.