If a company is using accrual basis accounting, when should it record revenue? A. when cash is received, even though services may be performed at a later date B. before services are performed C. when services are performed, even though cash may be received at a later date D. when cash is received, 30 days after the completion of the services

If a company is using accrual basis accounting, when should it record revenue? A. when cash is received, even though services may be performed at a later date B. before services are performed C. when services are performed, even though cash may be received at a later date D. when cash is received, 30 days after the completion of the services

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If a company is using accrual basis accounting, when should it record revenue?

when cash is received, even though services may be performed at a later date

before services are performed

when services are performed, even though cash may be received at a later date

when cash is received, 30 days after the completion of the services

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Which of the following transactions is recorded in the revenue journal? a. sale of excess office equipment for cash b. rendering services for cash c. rendering services on account d. sale of excess office equipment on account
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A prepaid expense is one of the assets which are on a balance sheet that a company or rather a business is paying in advance for the services and goods that they are yet to receive in the future. Prepaid expenses’ value is made over time onto the income statement but is initially recorded as an asset. So as to ensure a record sense of accountability, a company must adjust these expenses so as to ensure that the expenses are recognized within the period that the expenses are incurred within the business period. This expense is placed in the debit column before it expired, however, it has to be moved to the credit column. There are a number of adjustments that most of the companies do make entries to before they prepare their ultimate report on the financial period. Some of these adjustments include; accrued expenses, accrued revenue, depreciation expenses and even deferred revenues. What is your opinion?
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Please see below. I really need help with this asap. Please include relevant terms and dates as needed.