Under cash-basis accounting,if a company provides services to a customer in the current year but does not collect cash until the following year,the company should report the revenue in the current year.

Question

Quizplus · Accepted Answer

Under cash-basis accounting, revenues are recorded at the time cash is collected, not when services are provided. Therefore, the company should report the revenue in the following year when the cash is collected.

Under Cash-Basis Accounting,if a Company Provides Services to a Customer