If a company is using accrual basis accounting,when should it record revenue?
A) when cash is received, even though services may be performed at a later date
B) when services are performed, even though cash may be received at a later date
C) before services are performed
D) when cash is received, 30 days after the completion of the services

Question

Quizplus · Accepted Answer

With accrual basis accounting, revenue should be recorded when services are performed, even if cash is not received until a later date. This is because accrual accounting recognizes revenue when it is earned, regardless of when payment is received.

If a Company Is Using Accrual Basis Accounting,when Should It