When does a company account for revenue if it uses cash basis accounting?
A) when services are performed, even though cash may be received at a later date
B) before services are performed
C) when the services are being performed
D) when cash is received, either prior to, at the time of, or after the services are performed

Question

Quizplus · Accepted Answer

Under cash basis accounting, revenue is recognized when cash is received, regardless of when services are performed. This means that revenue is recorded when cash is received, regardless of whether it is prior to, at the time of, or after the services are performed.

When Does a Company Account for Revenue If It Uses