Asked by Ariyon Powell on Jul 03, 2024
Verified
Recognition of revenue under the cash basis occurs when the revenue is received.
Cash Basis
An accounting method where revenues and expenses are recorded only when cash is received or paid out.
- Absorb the essential conditions for the recognition of revenue and discern the differences between accounting on a cash basis and an accrual basis.
Verified Answer
BS
Brittany SheeranJul 08, 2024
Final Answer :
True
Explanation :
Revenue is recognized under the cash basis when it is received, as opposed to the accrual basis where revenue is recognized when it is earned or when the service is performed, even if the payment has not yet been received.
Learning Objectives
- Absorb the essential conditions for the recognition of revenue and discern the differences between accounting on a cash basis and an accrual basis.
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