Under cash basis accounting, when is revenue recognized?

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Multiple Choice

Under cash basis accounting, when is revenue recognized?

Explanation:
In cash basis accounting, revenue is recognized when cash is actually received from the customer. This approach records transactions only at the moment cash changes hands, so even if a service is completed or an invoice is issued, revenue isn’t recorded until payment is received. The act of performing the service doesn’t trigger revenue recognition under cash basis, and issuing an invoice or a customer signing a receipt doesn’t by itself record revenue unless cash has been collected.

In cash basis accounting, revenue is recognized when cash is actually received from the customer. This approach records transactions only at the moment cash changes hands, so even if a service is completed or an invoice is issued, revenue isn’t recorded until payment is received. The act of performing the service doesn’t trigger revenue recognition under cash basis, and issuing an invoice or a customer signing a receipt doesn’t by itself record revenue unless cash has been collected.

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