Accounting for revenue when no entry of revenue is made in the accounts until cash is received for the services performed is called
A) matching basis revenue.
B) cash basis expense.
C) service basis accounting.
D) modified cash basis.

Question

Quizplus · Accepted Answer

The practice described in the question is called modified cash basis accounting, where revenue is recognized only when cash is received instead of at the time when the service is performed. This approach is similar to the cash basis of accounting, but with minor adjustments to reflect accrual accounting principles. Options A, B, and C are not relevant to the specific scenario described in the question.

Accounting for Revenue When No Entry of Revenue Is Made