An accounting supervisor informs a college co-op student to record sales even though the customers will pay in the future.What kind of accounting does the company use?
A) cash-basis
B) accrual-basis
C) revenue-basis
D) sales-basis

Question

Quizplus · Accepted Answer

The company is using accrual-basis accounting since they are recording sales even though the customer has not yet paid. Accrual-basis accounting records transactions when they are earned or incurred, regardless of when the money is actually received or paid. This is different from cash-basis accounting, which only records transactions when money actually changes hands.

An Accounting Supervisor Informs a College Co-Op Student to Record