A Doctor Performed Surgery in March and Did Not Receive

question 137

Multiple Choice

A doctor performed surgery in March and did not receive cash from the patient until July.Under accrual accounting,the doctor recognizes revenue:

• A)in March.
• B)in July.
• C)in either March or July.
• D)at a time that cannot be determined from the facts.

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Definitions:

Investment Center

A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated based on its return on investment.

Profit Center

A separate business unit or department within an organization that is responsible for generating its own revenue and profits.

Direct Expenses

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and labor costs.

Sole Benefit

A principle ensuring actions or decisions, especially in fiduciary contexts, are made with the exclusive advantage of the beneficiary in mind.