sing accrual accounting, revenue is recorded and reported only if cash is received after the services are rendered when cash is received at the time services are rendered when cash is received without regard to when the services are rendered when the services are rendered without regard to when cash is received

Question

Social Studies

Kirsten Sexton

6 June, 05:12

sing accrual accounting, revenue is recorded and reported only if cash is received after the services are rendered when cash is received at the time services are rendered when cash is received without regard to when the services are rendered when the services are rendered without regard to when cash is received

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Answers (1)

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Zariah · Answer 1

Full question:

Using accrual accounting, revenue is recorded and reported only

A. If cash is received after the services are rendered

B. When the services are rendered without regard to when cash is received

C. When cash is received at the time services are rendered

D. When cash is received without regard to when the services are rendered

Answer:

B. When the services are rendered without regard to when cash is received

Explanation:

Accrual accounting is accounting method or technique, one of two accounting methods (cash basis), that recognizes revenue when it accrues such as when services or goods are rendered or sold to the buyer as opposed to when goods or services are sold for immediate cash exchange (cash basis). It matches revenue to expenses at the time when they occur regardless of whether cash has been received. Accrual accounting is used to show the true state / more accurate financial position of the company in a particular period.