Worldatwork Exam c8 Topic 1 Question 83 Discussion

Actual exam question for Worldatwork's c8 exam

Question #: 83
Topic #: 1

[All c8 Questions]

The Alpha company ships an order to a customer on March 1st and invoices the customer for the product with the shipment, with payment terms of net 30 days. The customer's payment is received on April 5th. The payment clears the bank and shows on Alpha's account on April 8th. If Alpha is using accrual accounting, when does it record the revenue for this sale?

AMarch 1st

BMarch 31st

CApril 5th

DApril 8th

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Suggested Answer: A

by Deonna at Sep 13, 2024, 03:05 AM

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Alline

7 days ago

April 8th, for sure. That's when the payment actually showed up in Alpha's account, which is the key date for accrual accounting.

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Vallie

9 days ago

March 1st, of course! That's when the order was shipped and invoiced. Easy peasy.

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Dottie

18 days ago

But shouldn't revenue be recognized when payment is received? So, it should be recorded on April 5th.

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Cassandra

20 days ago

I agree with Leonora, because that's when the order was shipped.

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Leonora

25 days ago

I think the revenue should be recorded on March 1st.

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