In accrual accounting, revenue may be earned prior to or after cash is received.

Name: In accrual accounting, revenue may be earned prior to or after cash is received.
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In accrual accounting, revenue is recognized when it is earned, regardless of when cash is received. This means that revenue may be earned prior to or after cash is received, and that the timing of cash receipts and revenue recognition may not always align.

In Accrual Accounting, Revenue May Be Earned Prior to or After