Given below are the activities of the Tamara Company:
$\begin{array} { l }
\text {Credit sales }&\$90,000 \
\text { Cash sales}&\$50,000 \
\text {Cash collections from credit customers }&\$ 36,000\
\text {Purchased inventory on account }&\$27,000 \
\end{array}$

Using the cash basis of accounting,the total revenues for Tamara Company are ________.
A) $56,000
B) $86,000
C) $90,000
D) $173,000

Question

Given below are the activities of the Tamara Company:
$\begin{array} { l  }
 \text {Credit sales  }&\$90,000 \
 \text { Cash sales}&\$50,000 \
 \text {Cash collections from credit customers }&\$ 36,000\
 \text {Purchased inventory on account }&\$27,000 \
\end{array}$

Using the cash basis of accounting,the total revenues for Tamara Company are ________.
A) $56,000
B) $86,000
C) $90,000
D) $173,000

Quizplus · Accepted Answer

Under the cash basis of accounting, revenues are recognized when cash is received. Therefore, the total revenues for Tamara Company include cash sales of $50,000 and cash collections from credit customers of $36,000, totaling $86,000.

Given Below Are the Activities of the Tamara Company Using the Cash Basis of Accounting,the Total Revenues for Tamara