Revenue Is Earned When ________

question 124

Multiple Choice

Revenue is earned when ________.

• A) there is a binding agreement to provide goods or services
• B) the journal entry to record revenue has been prepared
• C) the business has received cash from the customer
• D) (or as) the business satisfies each performance obligation

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Definitions:

Service Business

A type of business that provides intangible products, such as time, expertise, or activities, where physical goods are not transferred to the customer.

Pet Groomer

A professional who cleans, trims, and styles pets' coats, nails, and fur to maintain their appearance and hygiene.

Lawn Care

The maintenance and management of gardens, yards, or other grassy areas to ensure healthy growth and aesthetic appeal.

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.