Diana is a painter.She finishes work for a client in May.The client pays Diana for the job in August and that is when Diana records the sale.Which method of accounting is Diana using?
A) matching basis
B) revenue recognition basis
C) accrual basis
D) cash basis

Question

Quizplus · Accepted Answer

Diana is using the cash basis of accounting because she records the sale when she actually receives the payment from the client, which is in August, regardless of when the work was completed.

Diana Is a Painter