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:

1990s

The 1990s refer to the decade between January 1, 1990, and December 31, 1999, marked by significant global events, technological advancements, and cultural shifts.

States' Rights

The rights and powers held by individual US states rather than by the federal government.

Civil Rights Movement

The Civil Rights Movement was a decades-long struggle by African Americans and their allies in the mid-20th century to end institutional racial discrimination, disenfranchisement, and racial segregation in the United States.

Racial Inequality

Refers to disparities in outcomes and opportunities among individuals based on their race or ethnicity, often manifesting in economic, educational, and social settings.