Q280
The accrual basis of accounting records revenues when they are
A.
Collected
B.
Earned
AnswerC.
Contracted
D.
Readily available for use
Answer: Option B
Solution
Answer: Option B
Solution:
The accrual basis of accounting records revenues when they are earned. In other words, under the accrual basis of accounting, the receipt of cash and the payment of cash are not the focus of reporting revenues and expenses.