a
Concept Introduction:
Cash and Accrual accounting: Cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.
The service revenue for the given transaction on a cash basis.
b
Concept Introduction:
Cash and Accrual basis: The cash basis reports revenue only when the cash is received and expenses when cash is paid out. Whereas the accrual basis reports revenue when the product or service is delivered to the customer, and the expenses are recognized when they are incurred irrespective of whether the cash for such expense is paid or not.
The service revenue for the given transaction under an accrual basis.
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HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
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