Under Accrual Accounting When Is Revenue Recognized

question 90

Multiple Choice

Under accrual accounting when is revenue recognized?

• A)When cash is received, and expenses when cash is paid
• B)When cash is received, and expenses when the costs are incurred.
• C)When earned, and expenses when incurred.
• D)When earned, and expenses when cash is paid.

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Definitions:

Total Utility

The total satisfaction received from consuming a particular quantity of goods or services.

Marginal Utility

The added satisfaction a consumer gets from having one more unit of a good or service.

Diminishing Marginal Utility

A principle in economics that posits an individual gains less satisfaction from consuming each additional unit of the same product or service.

Marginal Utility

The extra pleasure or advantage gained from using another unit of a product or service.