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Problem 1: Are cash payments received from customers in advance treated as revenue at the time of receipt? Why or why not?
a. Yes, they are treated as revenue at the time of receipt because the company has access to the cash.
b. No, the amount of revenue cannot be adequately determined until the company completes the work.
c. Yes, The intent of the company is to perform the work and the customer is confident that the services will be completed.
d. No, revenue cannot be recognized until the company actually performs the work for which it has been paid.
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