Under the accrual method of accounting,income is considered earned when all the events have occurred which fix the right to receive the income and when the amount of income can be determined with reasonable accuracy.

Question

Quizplus · Accepted Answer

This statement is true. The accrual method of accounting recognizes income when it is earned, not necessarily when it is received. The income is considered earned when all the events have occurred which fix the right to receive the income and when the amount of income can be determined with reasonable accuracy.

Under the Accrual Method of Accounting,income Is Considered Earned When