When revenue has been earned,an entry can often be recorded before the related cash has been collected.

Name: When revenue has been earned,an entry can often be recorded before the related cash has been collected.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. It is known as accrual accounting, in which revenue is recognized when it is earned and not when the cash is received. This allows for more accurate financial statements that reflect the company's performance over a given period.

When Revenue Has Been Earned,an Entry Can Often Be Recorded