When Does a Company Account for Earned Revenue If It

question 4

Multiple Choice

When does a company account for earned revenue if it follows cash basis accounting?

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

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Definitions:

Truth Table

A tabular method used in logic to determine the truth values of logical expressions based on their components.

Atomic Sentences

The simplest type of sentence in logic, containing no logical connectives, and expressing a simple, complete thought.

Truth Values

The valuation of a proposition in logic, where it can either be true or false.

Truth Table

A tabular representation that shows the outcome of every possible logical operation for a set of propositions.