Cash for services to be performed in 2020 is received in 2019. Using the accrual basis of accounting, the revenue should appear on:

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, revenue is recognized when earned, regardless of when the cash is received. Since the services are to be performed in 2020, the revenue should be recognized in 2020, not when the cash was received in 2019.

Cash for Services to Be Performed in 2020 Is Received