Chapter 4, Problem 22Q

To determine

Accrual basis of accounting:

Accrual basis of accounting refers to recognizing the financial transactions during the period in which the event occurs, even if the cash is not exchanged.

Cash basis of accounting:

Cash basis of accounting refers to the recognition of financial transactions only when the cash is received or paid.

To describe: Whether A Incorporation records the sales on accrual basis or cash basis.