With the accrual basis of accounting, revenue from a credit sale is recognized
A)each time a payment on an account balance is received.
B)on the date the account is collected in full.
C)either on the date of the sale or when the amount of the sale is collected.
D)on the date of the sale.

Question

Quizplus · Accepted Answer

The accrual basis of accounting recognizes revenue at the point of sale, which means revenue from a credit sale is recognized on the date of the sale. It does not depend on whether the amount is collected or not.

With the Accrual Basis of Accounting, Revenue from a Credit