ASE Company sold goods, receiving $35,000 in cash and $15,000 on credit.How much revenue should it record under the accrual basis of accounting?

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, revenue is recognized when it is earned, regardless of when payment is received. Therefore, the company should record revenue for both the cash and credit sales, for a total of $50,000.

ASE Company Sold Goods, Receiving $35,000 in Cash and $15,000