Cash for merchandise to be delivered in 2009 is received in 2008. Using the accrual basis of accounting, the revenue should appear on:

Name: Cash for merchandise to be delivered in 2009 is received in 2008. Using the accrual basis of accounting, the revenue should appear on:
Brand: Quizplus
Rating: 4.8 (54 reviews)

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, revenue is recognized when it is earned, not when cash is received. Since the merchandise is delivered in 2009, the revenue should be recognized in 2009.

Cash for Merchandise to Be Delivered in 2009 Is Received