Using Accrual Accounting, Revenues Are Recorded

question 4

Multiple Choice

Using accrual accounting, revenues are recorded

• A) when cash is received without regard to when the services are performed or products have been delivered to customers
• B) when a service has been performed or products have been delivered to customers without regard to when cash is received
• C) when cash is received at the time services are performed or products have been delivered to customers
• D) only if cash is received after the services are performed or products have been delivered to customers

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Definitions:

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, reflecting the time value of money.

Present Value

The value today of a future money sum or cash flow stream, determined by a specified return rate.

Cash Flows

The comprehensive sum of cash being moved into and away from a business, critically impacting its financial agility.

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