Which of the following is an example of revenue or expense to be recognized in the current period's income statement?
A)Cash received from a client before the service is provided.
B)Inventory being held by a retail store.
C)Wages owed to employees who worked during the period.
D)Cash collected from an accounts receivable.

Question

Quizplus · Accepted Answer

Expenses are recorded when incurred and revenues are recorded when earned. Wages owed to employees for work during a period need to be recorded as an expense during that period.

Which of the Following Is an Example of Revenue or Expense