Using the accrual basis, in which month should revenue be recorded? A. In the month that the invoice is mailed to the customer B. In the month that goods are ordered by the customer C. In the month that goods are shipped to the customer D. In the month that cash is collected from the customer

Question

Business

Madelyn Bailey

31 January, 23:42

Using the accrual basis, in which month should revenue be recorded? A. In the month that the invoice is mailed to the customer B. In the month that goods are ordered by the customer C. In the month that goods are shipped to the customer D. In the month that cash is collected from the customer

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Answers (1)

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Mistress · Answer 1

The answer is c.

Explanation:

Receivables are reported as assets when they are earned.

Revenues are reported when they are earned.

Payables are reported as liabilities when they are incurred.

Record and report revenue at the time it is earned and realized by the business, not when the cash for the revenue is received by the business.