Worldatwork CECP Exam - Topic 4 Question 87 Discussion

Actual exam question for Worldatwork's CECP exam

Question #: 87
Topic #: 4

[All CECP 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

Show Suggested Answer

Suggested Answer: A

by Rory at Aug 14, 2025, 10:21 PM

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Iluminada

2 months ago

March 1st is definitely the right call here.

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Oren

2 months ago

Seems odd to count it before payment, right?

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Josefa

2 months ago

Totally agree, it's accrual accounting!

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Caprice

3 months ago

Revenue is recorded on March 1st.

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Asha

3 months ago

Wait, why not wait until payment clears?

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Tess

3 months ago

I keep mixing up the dates, but I feel like it might be when the payment is received, which would be April 5th. Is that right?

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Bernardo

4 months ago

This question reminds me of a practice problem we did where revenue was recognized at the point of sale. So, I would go with March 1st.

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Barbra

4 months ago

I'm not entirely sure, but I remember something about recognizing revenue when it's earned, which seems to be on March 1st too.

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Desmond

4 months ago

I think the revenue should be recorded on March 1st since that's when the shipment was made and the invoice was issued.

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Merissa

4 months ago

I'm pretty confident on this one. Since Alpha is using accrual accounting, the revenue should be recorded on March 1st when the product is shipped, regardless of when the payment is received.

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Ling

4 months ago

This is a tricky one. The question mentions the payment clearing the bank on April 8th, so I'm wondering if that's the date the revenue should be recorded. I'll need to review the accrual accounting principles to be sure.

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William

5 months ago

Okay, I think I've got it. With accrual accounting, the revenue is recognized when the performance obligation is satisfied, which is when the product is shipped on March 1st. The payment terms don't affect when the revenue is recorded.

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Georgene

5 months ago

Hmm, I'm a little unsure about this one. The payment terms are net 30 days, so does that mean the revenue can't be recorded until the payment is received on April 5th? I'll have to think this through carefully.

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Lai

5 months ago

This one seems straightforward - the question is asking when Alpha records the revenue, and since they're using accrual accounting, it should be when the product is shipped, which is March 1st.

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Arlette

5 months ago

But shouldn't revenue be recognized when payment is received, which is on April 5th?

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Gregoria

5 months ago

B) March 31st is the correct answer. The revenue should be recorded at the end of the accounting period, which is March 31st.

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Mariann

2 months ago

So, March 31st makes sense then?

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Ernest

2 months ago

Nope, accrual accounting changes that.

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Erasmo

3 months ago

I thought it was March 1st.

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Weldon

3 months ago

Exactly, revenue is recorded at period end.

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Lemuel

6 months ago

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

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Burma

6 months ago

D) April 8th seems like the right answer to me. That's when the payment cleared the bank, so that's the date the revenue should be recognized.

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Irene

7 months ago

I think the correct answer is C) April 5th. That's when the customer's payment was received, and that's when the revenue should be recorded under accrual accounting.

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Daniel

7 months ago

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

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