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.
BT: Comprehension

Question

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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, before the payment is actually received. This is known as accrual accounting, where revenue is recognized when it is earned, not when payment is received.

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