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:
Unlock Full Answers Instantly !
Access detailed, expert solutions to all your questions with just one click. See the complete answers now !
Unlock NowAlready have an account ? Log in
Resolve all your doubts in One Place
We provide expert solutions to your questions. Search for your doubts here and resolve your queries smoothly.
ASK your questionRecently Added Questions
An Example of an Individual Financial COI is:
A. A researcher's spouse works at the same university as the researcher. B. A researcher is considering buying stock in a publicly traded company that specializes in making and delivering hand-tossed pizza. C. A researcher's spouse holds equity in a publicly traded pharmaceutical company that is ...
ViewWhat was the Core Business that made Standard Oil a Horizontally Integrated Monopoly?
A. Finding new uses for oil B. Building oil pipelines C. Refining oil D. Transporting oil to customers Correct Answer: C. Refining oil Focussing primarily on oil refining was the key that enabled Standard Oil to establish itself as a dominant monopoly. In order to maintain its monopoly in ...
ViewThough it is Seen As a Last Resort, Bankruptcy Allows a Consumer to
A. Temporary stop paying debts B. Eliminate certain types of debt C. Easily reestablish good credit D. Receive credit in an emergency Correct Answer: B - Eliminate certain types of debt When a consumer files for bankruptcy, he/she is allowed to eliminate certain types of debts. The bank will ...
ViewWhich Best Describes The Nature Of Cause And Effect In The Context Of The Business Cycle?
A. Demand falls, causing production to stay at its peak. B. Goods are overproduced, causing a surplus in jobs. C. Consumers spend less, causing worker layoffs. D. A recession begins, causing consumers to spend more. Correct Answer: C. Consumers spend less, causing worker layoffs. "Consumers ...
ViewBoost Grades & Leave Stress
Share Your Requirements Now for Customized Solutions.
- Zero Plagiarism
- 24*7 Live Support
- Unlimited Revisions
- Free Plagiarism Report
- Money-Back Guarantee
- No Privacy Infringement
Whatsapp
Call 
Email 
Update your Number 
