Sales Revenues of a Utility for a Certain Fiscal Period

question 1

Multiple Choice

Sales revenues of a utility for a certain fiscal period

• A) Are equivalent to total debits to Customer Accounts Receivable for that period.
• B) Include receivables billed during a fiscal period,plus receivables billed early in the next year if meters were read before year-end.
• C) Should be reported on the cash basis for the sake of conservatism.
• D) Include billed receivables and an accrual for unbilled receivables as of the balance sheet date.

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Definitions:

Carrying Amount

The value at which an asset is recognized on the balance sheet after deducting accumulated depreciation or amortization.

Investment Account

A financial account held at a financial institution that is used for the purpose of holding and managing investments such as stocks, bonds, mutual funds, and other assets.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but does not fully control it.

Investment Account

An account held at a financial institution that is used to buy and hold investment assets, such as stocks, bonds, and mutual funds.