Which of the following is not a proper application of the revenue principle?
A)Recording the sale of merchandise on credit as sales revenue.
B)Recording rent received in advance as unearned rent revenue.
C)Recording interest revenue when cash is collected rather than when earned.
D)Reducing the unearned service revenue account for service revenue performed at the end of the accounting period.

Question

Quizplus · Accepted Answer

Revenue is recorded when earned, not upon the collection of cash.

Which of the Following Is Not a Proper Application of the Revenue