Final answer:
The subject of this question is Business. When a company provides services and collects cash, it is an example of revenue recognition. This transaction would also be reflected in the cash flow statement.
Step-by-step explanation:
The subject of this question is Business.
When the company provides services to a client and collects cash, it is an example of revenue recognition. Revenue recognition is the process of recognizing and recording revenue when it is earned, regardless of when the cash is received. In this case, the company has provided services and collected cash, so it can recognize the revenue as earned.
This transaction would also be reflected in the cash flow statement. The cash received from the client would be recorded as an inflow of cash, while the revenue earned would be recorded as an increase in operating activities.