Question

Which of the following statements about revenues are true? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) Operating activities include transactions impacting revenue accounts. checked Revenues are the amounts a business charges its customers for services it provides or goods it sells to them. checked Revenue is reported when the company is paid by the customer. unchecked Revenue is reported when the company fulfills its promise to transfer control of a good or service to a customer.

Answer 1

Answer:

Revenues are the amounts a business charges its customers for services it provides or goods it sells to them.

Revenue is reported when the company fulfills its promise to transfer control of a good or service to a customer.

Explanation:

The accounting follows principles which state that revenue will be recognize based on conservatisim and only when it is earned. Thus, it will be recognize when the business transfer control of the good or perofrm the serviced to a customer. The payment of a customer do not represent revenue until the job is complete or the goods delivered.