Under cash-basis accounting, if a company provides services to a customer in the current year but does not collect cash until th

Question

RideAnS [48]

3 years ago

7

Under cash-basis accounting, if a company provides services to a customer in the current year but does not collect cash until th

e following year, the company should report the revenue in the current year.
A. True
B. False

Business

1 answer:

PIT_PIT [208] · Answer 1 · 2022-03-26T02:24:55+03:00

Answer:FALSE

Explanation:CASH BASED ACCOUNTING is an accounting that is considered only when the money payment is effected. It does not take in account cash which has not been received. In the financial statements it will only include cash received during the year or period under review. This makes it different from Accrual based accounting which also includes cash not yet received but are been expected.