The transaction to record a cash sale will be the same under the accrual and cash-basis of accounting.

Question

Quizplus · Accepted Answer

Whether using the accrual or cash-basis method, a cash sale will be recorded as a debit to Cash and a credit to Sales. The only difference between the two methods is the timing of when the transaction is recorded. In accrual accounting, revenue is recognized when it is earned, regardless of when payment is received. In cash-basis accounting, revenue is only recognized when payment is received.

The Transaction to Record a Cash Sale Will Be the Same