Vidyalelo
Commerce · Q293

Accounting

Graduate and Post Graduate · Commerce · question 293

Q293

Under cash basis of accounting, revenue is recognized when

A.
Sale is made
B.
Cash is received
Answer
C.
Goods are delivered
D.
Services are rendered

Answer: Option B

Solution

Answer: Option B
Solution:
Under cash basis of accounting, revenue is recognized when Cash is received. Realizable means it is reasonable to expect that cash will be received in the future.