When a company provides services on account,which of the following would be recorded using cash-basis accounting?
A)Debit to Cash.
B)Debit to Service Revenue.
C)Credit to Deferred Revenue.
D)No entry would be recorded.

Question

Quizplus · Accepted Answer

Cash-basis accounting records transactions only when the cash is received or paid. Since the services are provided on account, no cash has been received yet and hence no entry would be recorded.

When a Company Provides Services on Account,which of the Following