A doctor performed surgery in March and did not receive cash from the patient until July.Under accrual-basis accounting,the doctor recognizes revenue:

Question

Quizplus · Accepted Answer

Under accrual-basis accounting, revenue should be recognized when it is earned, regardless of when cash is received. In this case, the doctor performed the surgery in March, so that is when the revenue should be recognized. The fact that the patient did not pay until July is irrelevant. Therefore, choice A is the correct answer.

A Doctor Performed Surgery in March and Did Not Receive