Using accrual accounting rules, XYZ Co. places an order with ABC Co. on January 4, 2022. Does ABC record revenue on that date?

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter4: Operating Activities: Sales And Cash Receipts
Section: Chapter Questions
Problem 4.15C
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Using accrual accounting rules, XYZ
Co. places an order with ABC Co. on
January 4, 2022. Does ABC record
revenue on that date?
O A. No
B. Yes
O C. Only if ABC collects cash from
its customer on that date
D. Only if XYZ signs a firm
contract with ABC
Transcribed Image Text:Using accrual accounting rules, XYZ Co. places an order with ABC Co. on January 4, 2022. Does ABC record revenue on that date? O A. No B. Yes O C. Only if ABC collects cash from its customer on that date D. Only if XYZ signs a firm contract with ABC
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