Under accrual basis accounting,we record revenue when ________.

Question

Quizplus · Accepted Answer

Under accrual basis accounting, revenue is recognized when it meets the criteria for revenue recognition, which includes earning the revenue through goods or services provided, the amount being measurable, and collectability being reasonably assured. Cash receipt does not determine when revenue should be recorded. Option A and D are incorrect because they both focus only on cash receipt and do not consider revenue recognition criteria. Option B is incorrect because cash receipt does not always indicate revenue recognition.

Under Accrual Basis Accounting,we Record Revenue When ________