Under the cash approach to profit measurement income is recorded in the accounting period when:

Question

Quizplus · Accepted Answer

Under the cash approach to profit measurement, income is recorded when cash is received, regardless of when the services were performed or when an order was placed. This approach only considers the actual inflow and outflow of cash, rather than the timing of when services are provided or products are sold. Therefore, the correct choice is C - cash is received.

Under the Cash Approach to Profit Measurement Income Is Recorded