A customer orders a heavy duty machinery from Yukon Inc in October.Yukon manufactures it in November and ships it along with their bill in December and receives payment in January.If Yukon is to recognize revenue in January,they are following:
A)Credit basis accounting
B)Accrual-basis accounting
C)Cash basis accounting
D)Debit basis accounting

Question

Quizplus · Accepted Answer

Yukon Inc. is recognizing revenue in January when they receive payment, which aligns with the principles of cash basis accounting. This method records revenue when cash is actually received, regardless of when the goods or services were delivered.

A Customer Orders a Heavy Duty Machinery from Yukon Inc