If a company is using the cash- basis method of accounting, when is revenue recorded?
A)When cash is received, at a time after the services were rendered
B)When services are rendered, even though cash may be received at a later date
C)When cash is received, prior to the services being rendered
D)When cash is received, either prior to the services being rendered or at a time after the services were rendered

Question

Quizplus · Accepted Answer

In cash-basis accounting, revenue is recorded when cash is received, regardless of when the services are rendered.

If a Company Is Using the Cash- Basis Method of Accounting