Given below are the activities of the Phoenix Company:
$\begin{array} { l }
\text {Owners invested cash in business }&\$20,000 \
\text {Credit sales }&\$ 80,000\
\text {Cash sales }&\$20,000\
\text { Cash collections from credit customers}&\$56,000 \
\text {Purchased inventory on account }&\$ 37,000\
\end{array}$

Using the accrual basis of accounting,the total revenues for Phoenix Company are ________.
A) $46,000
B) $90,000
C) $100,000
D) $173,000

Question

Given below are the activities of the Phoenix Company:
$\begin{array} { l  }
 \text {Owners invested cash in business }&\$20,000 \
 \text {Credit sales }&\$ 80,000\
 \text {Cash sales }&\$20,000\
 \text { Cash collections from credit customers}&\$56,000 \
 \text {Purchased inventory on account }&\$ 37,000\
\end{array}$

Using the accrual basis of accounting,the total revenues for Phoenix Company are ________.
A) $46,000
B) $90,000
C) $100,000
D) $173,000

Quizplus · Accepted Answer

Under the accrual basis of accounting, revenues are recognized when earned, not necessarily when cash is received. Therefore, the total revenues include both credit sales ($80,000) and cash sales ($20,000), totaling $100,000.

Given Below Are the Activities of the Phoenix Company Using the Accrual Basis of Accounting,the Total Revenues for Phoenix