Which of the Following Is Not a Proper Application of the Revenue

question 39

Multiple Choice

Which of the following is not a proper application of the revenue principle?

• A)Recording the sale of merchandise on credit as sales revenue.
• B)Recording rent received in advance as unearned rent revenue.
• C)Recording interest revenue when cash is collected rather than when earned.
• D)Reducing the unearned service revenue account for service revenue performed at the end of the accounting period.

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Definitions:

Globalization

The process of transformation of local or regional phenomena into global ones, involving the interconnectedness of economies, societies, and cultures across the world.

Global North

Wealthy, industrialized countries in the northern hemisphere (previously referred to as the First World).

Global South

Term used to describe countries and regions located primarily in the southern hemisphere, often focusing on those with developing or underdeveloped economies, highlighting global inequities.

Wal-Mart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.