Using accrual accounting, revenue is recorded and reported only
A) when cash is received without regard to when 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) if cash is received after the services are rendered

Question

Quizplus · Accepted Answer

Accrual accounting records revenue when the services are rendered or goods are delivered, regardless of when the cash is received. This ensures that financial statements reflect the true economic performance of a business, as opposed to cash-based accounting which only records revenue when cash is received.

Using Accrual Accounting, Revenue Is Recorded and Reported Only