Which of the following is/are true?
A)Revenues from sales of goods or services to customers during a particular period do not necessarily equal cash received from customers during the same period.
B)The receipt of cash can precede, coincide with, or follow the recognition of revenue.
C)Expenses incurred to generate revenues during a particular period do not necessarily equal cash expended for the goods and services consumed in operations during the same period.
D)The expenditure of cash can precede, or coincide with, or follow the recognition of expenses.
E)all of the above

Question

Quizplus · Accepted Answer

All of the statements are true. Revenue recognition and expense recognition are separate from cash inflows and outflows. Revenue can be recognized before receiving cash or after receiving cash, and expenses can be recognized before paying cash or after paying cash. Therefore, revenues from sales or services may not equal cash received, and expenses incurred may not equal cash payouts.

Which of the Following Is/are True