In a service-type business, revenue is considered earned
A) at the end of the month.
B) at the end of the year.
C) when the service is performed.
D) when cash is received.

Question

Quizplus · Accepted Answer

Revenue in a service-type business is considered earned when the service is performed, regardless of when the cash is received. This follows the revenue recognition principle in accounting, which states that revenue is recognized when earned.

In a Service-Type Business, Revenue Is Considered Earned