The Accrual Basis of Accounting Recognizes

question 34

Multiple Choice

The accrual basis of accounting recognizes:

• A) Revenue when cash is received from customers
• B) Expenses when paid
• C) Revenue when all or a substantial portion is performed
• D) Revenue when contracts are signed

---

Definitions:

Service Revenue

Income earned by a company for the services it has provided to its customers.

Bank Loan Payable

Bank Loan Payable is the amount owed by a borrower to a bank, typically represented as a liability on the borrower's balance sheet.