Multiple choice

An increase in revenue resulting from a sale on account should be recorded

  1. at the end of each month

  2. when the final payment is made

  3. at the time of the sale

  4. at the end of the fiscal period
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the accrual basis of accounting, revenue is recognized and recorded at the time the sale is made, regardless of when the cash is actually received.

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