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

---

Definitions:

Investment Centre Manager

An individual responsible for managing a business segment that is evaluated based on its return on investment or profitability, having authority over costs, revenues, and investments.

Cost Centre Manager

An individual responsible for managing and controlling the costs within a specific department or unit of a business.

External Sales Price

The price at which goods or services are sold to customers outside of the producing company.

Variable Manufacturing Cost

Costs associated with manufacturing that vary directly with the level of production, such as materials and labor.