Porite Company Recognizes Revenue in the Period in Which It

question 41

Multiple Choice

Porite Company recognizes revenue in the period in which it records an asset for the related account receivable, rather than in the period in which the account receivable is collected in cash. Porite's practice is an example of:

• A) Cash basis accounting.
• B) Accrual accounting.
• C) The matching principle.
• D) Economic entity.

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Definitions:

Network Design Decision

Involves determining the most efficient arrangement of infrastructure, resources, and processes to effectively deliver goods or services to customers.

Customer Needs

The requirements or desires of consumers that drive the demand for products or services offered by businesses.

Fluctuations

Variations or changes in level, intensity, or value over time, typically referring to economic indicators, market prices, or environmental conditions.

Exchange Rates

The worth of one currency when exchanged for another.