On Time Computer Repair uses accrual basis accounting.A computer was repaired on July 15.The customer picked up the computer on August 1 and mailed the payment on August 5.On Time Computer Repair received the check in the mail on August 10.The revenue should be recognized on which date?
A)July 15
B)August 1
C)August 5
D)August 10

Question

Quizplus · Accepted Answer

Revenues are recognized when the performance obligation is satisfied.In this case the company performed the act promised to the customer when the computer was repaired,on July 15.

On Time Computer Repair Uses Accrual Basis Accounting