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Which Statement about the Accrual Based Method of Accounting are True?

Answer :

A. Revenue is recognized when a customer places an order.

B. Revenue is recognized when payment is received.

C. Expenses are recognized when the cash leaves the bank account.

D. Revenue is recognized when earned.

Correct Answer: D. Revenue is recognized when earned.

The accrual accounting method counts money as earned when it's earned, even if you haven't been paid yet.

Related Questions: CUI Documents Must Be Reviewed According to Which Procedures Before Destruction?

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