If Payment Is Received at the Same Time a Service

question 102

True/False

If payment is received at the same time a service is produced and sold,there is no difference between how cash and accrual accounting record the transaction.
BT: Comprehension

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Definitions:

Revenue Recognition

The accounting principle dictating the specific conditions under which revenue is recognized or recorded.

Shipment Date

The shipment date is the day on which goods are officially transferred from the seller to the carrier or dispatched for delivery to the buyer.

FOB Shipping Point

A shipping term indicating that the buyer assumes responsibility for the goods and shipping costs the moment the goods leave the seller's premises.

Title Passes

Refers to the transfer of ownership of property or goods from a seller to a buyer upon the fulfillment of certain conditions.