Today, a company sold $1,000 of goods on credit.The customer took the goods with him, but will only pay in 30 days.When would the sale be reflected under the cash basis of accounting and the accrual basis of accounting? $\begin{array}{ll}&\text { Cash Basis }&\text { Accrual Basis }\
A.&\text { today } & \text { today } \
B.&\text { today } & \text { at collection } \
C.&\text { at collection } & \text { today } \
D.&\text { at collection } & \text { at collection }
\end{array}$

Question

Quizplus · Accepted Answer

Under the cash basis of accounting, revenue is recognized when cash is received, so the sale would be reflected when the payment is collected. Under the accrual basis of accounting, revenue is recognized when earned, regardless of when payment is received, so the sale would be reflected today when the goods were delivered.

Today, a Company Sold $1,000 of Goods on Credit A)Option a B)Option B C)Option C D)Option D

Today, a Company Sold $1,000 of Goods on Credit A)Option a
B)Option B
C)Option C
D)Option D