A CPA prepares tax returns for clients and bills them after the work is completed.It usually takes two weeks of work to prepare the tax returns.It takes 30 days on average to receive payment from the clients.The CPA uses cash-basis accounting.The revenue should be recorded when the CPA:

Question

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Under cash-basis accounting, revenue is recognized when cash is received, regardless of when the services were performed. Therefore, the CPA should record the revenue when payment is received from the clients.

A CPA Prepares Tax Returns for Clients and Bills Them