When Does a Company Account for Revenue If It Uses

question 132

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) before services are 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:

Conditioned Response

A learned response to a previously neutral stimulus after it has been repeatedly paired with an unconditioned stimulus.

Seligman

A psychologist known for his work on learned helplessness, positive psychology, and well-being.

Stimulus Discrimination

The process by which animals or humans learn to differentiate between two similar stimuli and respond appropriately to each.

Vanilla Pudding

A sweet dessert made from milk, sugar, vanilla extract, and a thickening agent, often served chilled or at room temperature.