Revenues
A)are decreases in equity resulting from rendering services.
B)are a cost of doing business.
C)are called expired costs.
D)are earned through the sale of goods,even though the cash may not be collected until later.

Question

Quizplus · Accepted Answer

Revenues are earned by a company through the sale of goods or services, even though the cash may not be collected until a later time. This is why revenues are recognized on an accrual basis, meaning the revenue is recognized as soon as the good or service is delivered, regardless of when payment is received. Therefore, option D is the best choice as it correctly explains that revenues are earned through the sale of goods, even if the cash is not collected until later.