Which of the Following Is Not a Proper Application of the Revenue

question 87

Multiple Choice

Which of the following is not a proper application of the revenue recognition principle?

• A)Recording the sale of merchandise on credit as sales revenue.
• B)Recording rent received in advance as unearned rent revenue.
• C)Recording interest revenue when cash is collected rather than when earned.
• D)Reducing the unearned service revenue account for service revenue performed at the end of the accounting perioD.Revenue is recognized when earned, not upon the collection of cash.

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Definitions:

Larynx

The voice box located in the throat, housing the vocal cords and responsible for producing sound.

Superior Rectus

A muscle in the eye that primarily contributes to upward eye movement.

Eye Muscle

Any of the six muscles that control the movement of the eye and the eyelid.

Intrinsic Eye Muscles

Muscles located within the eye that control its movements and the size of the pupil.