During November 2015,Asler Inc

question 161

Multiple Choice

During November 2015,Asler Inc.performs consulting services.The client does not pay Asler until January,2016.

• A) Using the accrual basis of accounting, the revenue is reported in January 2016.
• B) Using the cash basis of accounting, the revenue is reported in November 2015.
• C) Using the accrual basis of accounting, the revenue is reported in November 2015.
• D) Using the accrual basis of accounting, the revenue is reported when Asler's expenses are paid.

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Definitions:

Inspection

The act of examining something closely, often for quality, safety, or compliance verification.

Nonconforming Goods

Goods delivered under a sales contract that do not meet the specifications or quality standards agreed upon.

Perfect Tender Rule

A legal principle that allows buyers to reject goods that do not exactly match what was agreed upon in the contract.

Uniform Commercial Code

A standardized set of laws and regulations that govern commercial transactions in the United States.