Final answer:
Under GAAP, revenues are to be recognized in the period in which those revenues are earned and not necessarily in the period in which cash is actually received from a customer.
Step-by-step explanation:
Under Generally Accepted Accounting Principles (GAAP), revenues are recognized in the period in which they are earned, regardless of whether cash has been received from the customer. This means that even if the payment is yet to be received, the revenue is recognized in the books.
For example, if a company provides a service to a customer in January but doesn't receive payment until February, the revenue is still recognized in January.
Therefore, the correct answer is A. True.