If a company is using the cash-basis method of accounting,when is revenue recorded?
A) When services are rendered, even though cash may be received at a later date
B) When cash is received, prior to the services being rendered
C) When cash is received, at a time after the services were rendered
D) When cash is received, either prior to the services being rendered or at a time after the services were rendered

Question

Quizplus · Accepted Answer

In cash-basis accounting, revenue is recorded when cash is received, regardless of when the services were actually rendered. This can happen either before the services are provided or after.

If a Company Is Using the Cash-Basis Method of Accounting,when