Under the cash-basis of accounting, revenues are recorded
A) when they are recognized and realized.
B) when they are recognized and realizable.
C) when they are recognized.
D) when they are realized.

Question

Quizplus · Accepted Answer

Under the cash-basis of accounting, revenues are recorded when they are realized, meaning when cash is received. This method does not take into account when revenue is recognized or realizable, but rather only when payment is actually received.

Under the Cash-Basis of Accounting, Revenues Are Recorded