Revenues are recognized when ______, even when the cash is collected in a different accounting period than the obligation to the

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3 years ago

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customer has been performed.

1 answer:

Elanso [62] · Answer 1 · 2022-11-28T12:43:59+03:00

The condition for which revenues are recognized even when the cash is collected in a different accounting period is;

Services are provided even if cash has not yet been collected, in cases of accrual basis accounting

<h3>Revenue recognition</h3>

Two major forms of revenue recognition exist;

When Cash is collected from customers. This is the case when the organisation uses cash basis accounting
When services are provided even if cash has not yet been collected. This is the case when the organisation used accrual basis accounting