The amount charged for a good or service provided to a customer on account is posted to a revenue account only after the payment is received.

Name: The amount charged for a good or service provided to a customer on account is posted to a revenue account only after the payment is received.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The amount charged for a good or service provided to a customer on account is posted to a revenue account at the time of the sale, regardless of when the payment is received. This is known as accrual accounting.

The Amount Charged for a Good or Service Provided to a Customer