The System of Accounting Where Revenues Are Recorded When Services

question 96

True/False

The system of accounting where revenues are recorded when services have been performed or products have been delivered to customers and expenses are recorded when they are incurred is called the cash basis of accounting.

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Definitions:

Excess Capacity

Refers to a situation where a company has more production capability available than is necessary to meet demand, often resulting in unused resources or facilities.

Financial Advantage

A benefit that helps to improve a company's financial position, which can include lower costs, access to new markets, or additional revenues.

Financial Advantage

The benefit gained in financial terms, providing an edge over competitors or contributing to financial stability.

Outside Supplier

An external organization or company that provides goods or services to another company as opposed to internal sources.