When does a company account for revenue if it uses cash basis accounting? Select one: A. when cash is received, either prior to, at the time of, or after the services are performed B. when services are performed, even though cash may be received at a later date C. before services are performed D. when the services are being performed

Question

Isabel Vargas

Business

17 January, 16:17

When does a company account for revenue if it uses cash basis accounting? Select one: A. when cash is received, either prior to, at the time of, or after the services are performed B. when services are performed, even though cash may be received at a later date C. before services are performed D. when the services are being performed

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Answers (1)

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Andres Pineda · Answer 1

A. when cash is received, either prior to, at the time of, or after the services are performed

Explanation:

According to the cash basis accounting, the revenue should be recorded when the cash is received either before or at the time or even after the services are performed

Whenever cash is received it should be recorded in the books of accounts it can be any time before, at the time or even after

Hence, the option A is correct