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A Company Receives a $25,000 Cash Deposit from a Customer

Question 3

Multiple Choice

A company receives a $25,000 cash deposit from a customer on March 15 but will not deliver the goods until April 20. Which of the following statements is false?


A) Cash will be reported on the statement of cash flows for the month of March.
B) Revenue will be recorded and reported on the statement of earnings for March.
C) Revenue will be recorded and reported on the statement of earnings for April.
D) A liability will be reported on the statement of financial position at the end of March.

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