When Revenue Has Been Earned, No Entry Is Recorded Until

question 4

True/False

When revenue has been earned, no entry is recorded until the related cash has been collected.

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Definitions:

Quantity Variance

Measures the difference between the actual amount of materials or labor used in production and the amount that should have been used, according to standards.

Standard Price

The predetermined cost of acquiring a product or receiving a service under normal conditions.

Pounds

Often refers to a unit of weight used primarily in the British imperial and United States customary systems.

Materials Variance

The difference between the actual cost of materials used in production and the expected (standard) cost of those materials.