If a Company Is Using the Cash-Basis Method of Accounting,when

question 34

Multiple Choice

If a company is using the cash-basis method of accounting,when is revenue recorded?

• A)When cash is received,at a time after the services were rendered
• B)When services are rendered,even though cash may be received at a later date
• C)When cash is received,either prior to the services being rendered or at a time after the services were rendered
• D)When cash is received,prior to the services being rendered

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Definitions:

Holder

An individual or entity that possesses a negotiable instrument, such as a check or promissory note, and has the right to enforce it.

Bearer

Pertaining to negotiable instruments, it refers to the individual possessing the document entitled to the rights therein.

Instrument

A legal document formally evidencing a right or obligation, such as contracts, wills, or promissory notes.

Good Faith

A principle that emphasizes honesty, fairness, and integrity in the fulfillment of contractual obligations or in negotiations.