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

---

Definitions:

Break-even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Sales Dollars

The total revenue generated from the sale of goods or services, measured in dollar amount.

Common Fixed Expenses

Expenses that remain constant in total regardless of changes in the level of activity or volume of output.

Break-even

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.