When Does a Company Account for Revenue If It Uses

question 65

Multiple Choice

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

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

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Definitions:

Government Intervention

Actions taken by a government to influence or regulate various activities within its economy, such as imposing taxes, subsidies, and regulations.

External Costs

Costs incurred by society as a whole due to economic activities but not reflected in the market price or borne by the producer or consumer involved.

Pollution Abatement

Actions or measures taken to reduce, control, or eliminate pollution and its negative impacts on the environment.

Socially Optimal

A condition or output level where the social welfare is maximized, taking into account both the benefits to consumers and the costs to producers.