q17

Cougar Company credited cash for a prepayment. They did this because Multiple Choice Sales are delayed pending credit approval. Customers are unable to pay the full amount due when goods are delivered. Cash payment occurs after the expense is incurred and liability is recorded. Cash payment (or an obligation to pay cash) occurs before the expense recognition. Cougar Company credited cash for a prepayment. They did this because Multiple Choice Sales are delayed pending credit approval. Customers are unable to pay the full amount due when goods are delivered. Cash payment occurs after the expense is incurred and liability is recorded. Cash payment (or an obligation to pay cash) occurs before the expense recognition