Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 9 - No. 2)
If a company uses the accrual basis of accounting, when is revenue recognized?
When cash is received.
When the service is performed or the goods are delivered.
At the end of the accounting period.
When an invoice is sent.
Explanation
Under the accrual basis, revenue is recognized when it is earned, regardless of when cash is received.
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