If a company is using accrual basis accounting,when should it record revenue?
A)when cash is received,even though services may be performed at a later date
B)when services are performed,even though cash may be received at a later date
C)when services are performed and cash is received
D)when cash is received,30 days after the completion of the services

Question

Quizplus · Accepted Answer

Accrual basis accounting records revenue when services are performed, regardless of when cash is received. This is because the revenue has been earned and is therefore recognized as soon as the service is provided, even if payment is not received until a later date.

If a Company Is Using Accrual Basis Accounting,when Should It