Wong's Tune-Up Shop Limited uses the cash basis of accounting. Wong services a car on May 31. The customer picks up the vehicle on June 1 and mails payment to Wong on June 5. Wong receives the cheque in the mail on June 6. When would Wong recognize the revenue as being earned?
A) June 6
B) June 5
C) June 1
D) May 31
Correct Answer:
Verified
Q42: Using accrual accounting, expenses are recorded and
Q43: Adjusting entries are required
A) because some costs
Q44: Which one of the following is not
Q45: Fang's Tune-Up Shop Ltd. uses the accrual
Q46: An adjusting entry to a prepaid expense
A)
Q48: The general term employed to indicate an
Q49: In general, revenue recognition occurs
A) when cash
Q50: Recording transactions that affect a company's financial
Q51: Some accounts need to be adjusted because
A)
Q52: Under the accrual basis of accounting
A) cash
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