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A firm records revenue in the period it was earned rather than when cash arrives. That method is:
AAccrual
BAdjacent
CAdditive
DAdaptive
Answer & Solution
Correct answer: A. Accrual
1. The trigger for recording is the earning of the revenue.
2. Receipt of cash may come earlier or later.
3. That method is accrual accounting.
_Source: OpenStax Principles of Financial Accounting, Chapter 4, The Adjustment Process._
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