Under accrual-basis accounting, sales made on credit are usually reported as:
A) liabilities.
B) revenue.
C) cash from operating activities.
D) a contra account to sales revenue.

Question

Quizplus · Accepted Answer

Sales made on credit are considered revenue under accrual-basis accounting since they represent an earning that has been realized by the company, even though the cash may not have been received yet.

Under Accrual-Basis Accounting, Sales Made on Credit Are Usually Reported