Flyer Co.billed a client for flying lessons given in January.The payment was received in February.Under the accrual basis of accounting, when should Flyer Co.record the revenue?
A) January
B) February
C) Some in January and some in February
D) Flyer Co.should not record any revenue

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, revenue is recognized when earned, regardless of when the payment is received. Since the flying lessons were given in January, Flyer Co. should record the revenue in January.

Flyer CoBilled a Client for Flying Lessons Given in January