If Crane company records revenue when cash is received, they are using the:
A)cash basis of accounting.
B)accrual basis of accounting.
C)adjustment basis of accounting.
D)expense basis of accounting.

Question

Quizplus · Accepted Answer

Crane company records revenue when cash is received, which indicates that they are using the cash basis of accounting. Under this method, revenue and expenses are recognized only when cash is received or paid, respectively.

If Crane Company Records Revenue When Cash Is Received, They