Using accrual accounting, revenue is recorded and reported only:
A) when cash is received without regard to when the services are rendered.
B) when the services are rendered without regard to when cash is received.
C) when cash is received before services are rendered.
D) if cash is received after the services are rendered.

Question

Quizplus · Accepted Answer

Accrual accounting records revenue when services are rendered or goods are delivered, regardless of when payment is received. This method matches revenue with expenses, providing a more accurate picture of the company's financial performance.

Using Accrual Accounting, Revenue Is Recorded and Reported Only