Sales Revenue Is Only Recorded After Cash Is Collected

When To Record Sales Revenue Under Accrual Basis Of Accounting And Cash Basis Of Accounting

The correct answer is (c), as according to Accrual Basis of Accounting, we record Sales Revenue when it has been earned by the company during the current accounting period whether the cash is received or not.

However, under Cash Basis of Accounting, sales revenue is only recorded when cash is received or collected.