Using accrual accounting, revenues are recorded a. when cash is received at the time services are performed or products have been delivered to customers b. when a service has been performed or products have been delivered to customers without regard to when cash is received c. only if cash is received after the services are performed or products have been delivered to customers d. when cash is received without regard to when the services are performed or products have been delivered to customers

Question

Business

Nolan Leach

26 February, 04:41

Using accrual accounting, revenues are recorded a. when cash is received at the time services are performed or products have been delivered to customers b. when a service has been performed or products have been delivered to customers without regard to when cash is received c. only if cash is received after the services are performed or products have been delivered to customers d. when cash is received without regard to when the services are performed or products have been delivered to customers

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Thornton · Answer 1

b. When a service has been performed or products have been delivered to customers without regard to when cash is received.

Explanation

In accrual basis accounting, the revenues are recorded immediately when services are performed or products have been delivered. The company record the revenues at the day of services performed or products shipped without receiving the actual cash.