The Amount Charged for a Good or Service Provided to a Customer

question 99

True/False

The amount charged for a good or service provided to a customer on account is posted to a revenue account only after the payment is received.

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Definitions:

Account

A record used to keep track of and summarize financial transactions within a specific category, such as sales, expenses, or assets.

Accounting Record

Documentation and entries that capture financial transactions and positions within an entity.

Specific Item

Refers to a unique or distinctly identified item within an inventory or accounting context.

Chart of Accounts

An organizational tool that lists all the accounts in a company's general ledger, categorizing financial transactions into specific classes for reporting and analysis purposes.