In practice, under accrual accounting most income is recognised:
A) when the goods are produced.
B) at the point of sale.
C) when the cash is received.
D) when an order is received.

Question

Quizplus · Accepted Answer

Under accrual accounting, income is recognized at the point of sale, regardless of when the cash is received. This means that revenue is recognized when a product or service is sold, regardless of whether or not the payment has been received. This allows for a more accurate representation of the financial performance of a business over a period of time.

In Practice, Under Accrual Accounting Most Income Is Recognised