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

question 206

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) before services are performed
• D) when cash is received, 30 days after the completion of the services

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Definitions:

Differentiate

The act of differentiating a product or service from competitors in order to appeal more to a specific target audience.

Loyal Customers

Individuals who consistently prefer and choose a particular brand or product over competitors, often due to satisfaction, rewards, or emotional connections.

Marketing Expenditures

The total costs associated with activities aimed at creating demand for products or services, including advertising, promotions, and distribution.

Mobile Phone

A mobile phone that enables users to make and receive calls using a radio frequency connection as they move around within a service provider's coverage area.