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 of this multiple choice question 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 by the company from customers for goods sold to them during the current accounting period.

However, under Cash Basis of Accounting, sales revenue is only recorded when cash is received or collected by the company from the customers for goods sold for cash.

The other options of this mcq are incorrect choices here.