- There are two way different methods which are used to record accounting transactions, one is the accrual basis of accounting and the other one is the cash basis of accounting. The main difference between the two methods is the timing of recording the accounting transaction. To determine:- Here, in the problem provided to us, we are required to determine the amount to be recorded as service revenue at the end of the year for Peaceful Homes as per cash basis of accounting and as per accrual basis of accounting.

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Chapter 3, Problem S3.2SE

To determine

Introduction:-

There are two way different methods which are used to record accounting transactions, one is the accrual basis of accounting and the other one is the cash basis of accounting. The main difference between the two methods is the timing of recording the accounting transaction.

To determine:-

Here, in the problem provided to us, we are required to determine the amount to be recorded as service revenue at the end of the year for Peaceful Homes as per cash basis of accounting and as per accrual basis of accounting.

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