Recognizing Revenue When It Is Earned and Not When Cash

question 38

Multiple Choice

Recognizing revenue when it is earned and not when cash is received and recognizing expenses when the related goods or services are used rather than when they are paid for is called:

• A)Revenue recognition.
• B)Accrual accounting.
• C)Conservatism.
• D)Matching.

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Definitions:

Mechanoreceptors

Sensory receptors that respond to mechanical pressure or distortion.

EEG

Electroencephalogram, a test that measures and records the electrical activity of the brain.

Meissner Corpuscles

Specific nerve terminations in the skin designed to respond to the sensation of light touch.

Mechanoreceptors

Sensory receptors in the skin and other body parts that respond to mechanical pressure or distortion, playing a key role in touch, pressure, and sound sensation.