The business or professional person using the cash basis of accounting takes the view that there is no revenue until it is received in such a form that it can be spent.

Question

Quizplus · Accepted Answer

The cash basis of accounting recognizes revenue only when it is received in the form of cash or checks that can be deposited and spent. Therefore, until the money is in hand, the revenue is not recognized.

The Business or Professional Person Using the Cash Basis of Accounting