Receipts of cash in advance from customers are A : treated as revenue at the time of receipt because the intent of the company is to perform the work and the customer is confident that the services will be completed. B : not treated as revenue at the time of receipt because revenue cannot be recognized until the work is performed. C : not treated as revenue at the time of receipt because the amount of revenue cannot be adequately determined until the company completes the work. D : treated as revenue at the time of receipt because the company has access to the cash.

Question

Business

Andrew Cannon

21 February, 22:50

Receipts of cash in advance from customers are A : treated as revenue at the time of receipt because the intent of the company is to perform the work and the customer is confident that the services will be completed. B : not treated as revenue at the time of receipt because revenue cannot be recognized until the work is performed. C : not treated as revenue at the time of receipt because the amount of revenue cannot be adequately determined until the company completes the work. D : treated as revenue at the time of receipt because the company has access to the cash.

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Answers (1)

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Jeramiah Mendoza · Answer 1

The correct option is B

Explanation:

Revenue is the total amount of income generated by the sales of goods or services. So receiving cash from a customer cannot be treated as revenue until the service is performed by the company