Question

8a. When should a shipping company recognize revenue from its delivery service?

a. On the date the customer places a order.

b. On the date the customer’s packages are delivered.

c. On the date the invoice is mailed to the customer.

d. On the date the customer's payment is received.

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8B.

When is revenue from the sale of merchandise normally recognized?

	a.	On the date the sale is made.
	b.	On the date the customer pays for the merchandise.
	c.	Either on the date on which the sale occurs, or the date on which the customer pays.
	d.	When the merchandise is sold, if sold for cash, or when payment is received, if sold on credit.

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9a.

A company that sells merchandise to customers should normally recognize

	a.	revenue only after the cash is collected.
	b.	revenue and the related expenses in the period the revenue earned, whether payment is received or not.
	c.	both Revenue and expenses in the period following sale.
	d.	expenses in the period the merchandise is sold and revenue in the following period.

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9B.

Accrued expenses originate from

	a.	paying off liabilities.
	b.	paying for items such as insurance in advance.
	c.	collecting cash from customers.
	d.	incurring expenses without yet having paid cash for them.

Answer 1