If a Company Is Using Accrual Basis Accounting,when Should It

question 121

Multiple Choice

If a company is using accrual basis accounting,when should it record revenue?

• A)when cash is received,even though services may be performed at a later date
• B)when services are performed,even though cash may be received at a later date
• C)when services are performed and cash is received
• D)when cash is received,30 days after the completion of the services

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Definitions:

Source Amnesia

A type of amnesia where an individual can remember specific information, but cannot recall how, when, or where they learned that information.

Imagination Inflation

A phenomenon where imagining an event can increase confidence in the false belief that the event actually occurred in the past.

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimulus has ceased.

Visualizing

The process of forming mental images or scenarios to comprehend, explore, or analyze situations, concepts, or plans.