Revenues Are Recognized When __________,Even When Cash Is Collected in a Different

question 20

Multiple Choice

Revenues are recognized when __________,even when cash is collected in a different accounting period than the revenue is earned.

• A) cash is collected
• B) bills are paid
• C) services are performed
• D) customers prepay for goods/services

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Definitions:

Ordinary Perpetuity

A series of equal cash flows that occur at the end of each period forever.

Ordinary Annuity

A series of equal payments made at the end of consecutive periods over a fixed length of time.

Compounded Quarterly

When an investment's interest is compounded quarterly, the interest is calculated and added to the principal four times a year.

Perpetuity

A financial instrument that provides a stream of infinite cash flows or payments.