Using the accrual basis of accounting,if payment is received after delivery of a good or service,an asset is recorded at the time the good or service was delivered.

Question

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The accrual basis of accounting records revenue and expenses when they are earned or incurred, regardless of when the cash transaction occurs. Therefore, if payment is received after delivery of a good or service, an asset (usually accounts receivable) is recorded at the time the good or service was delivered.

Using the Accrual Basis of Accounting,if Payment Is Received After