When does a company account for earned revenue if it follows cash basis accounting?
A)when services are rendered,even though cash may be received at a later date
B)when cash is received after the service is completely rendered
C)when the services are being rendered
D)when cash is received,either prior to the services being rendered or at a time after the services are rendered

Question

Quizplus · Accepted Answer

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

When Does a Company Account for Earned Revenue If It