With an Accrual of Revenue

question 20

Multiple Choice

With an accrual of revenue:

• A)the cash is received after the revenue is recorded.
• B)the cash is received before the revenue is recorded.
• C)plant assets can create an accrual adjustment.
• D)prepaid expenses can create an accrual adjustment.

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Definitions:

Electricity Consumption

The amount of electrical power used by devices, systems, or facilities over a specific period of time.

Consumer

An individual who purchases goods or services for personal use rather than for manufacture or resale.

Implementation

The process of putting a decision or plan into effect; execution.

Insufficient Return

A return on an investment or project that is not high enough to cover the costs or meet the expectations of the stakeholders.