If a company is using the accrual method of accounting,when is revenue recorded?
A)When cash is received,30 days after the completion of the services
B)When cash is received,before the completion of the services
C)When cash is received,even though services may be rendered at a later date
D)When services are rendered,even though cash may be received at a later date

Question

Quizplus · Accepted Answer

When a company is using the accrual method of accounting, revenue is recorded when services are rendered, even though the cash may be received at a later date. This means that revenue is recognized when the company has earned it, regardless of when the payment is actually received.

If a Company Is Using the Accrual Method of Accounting,when