In income statement, do we record revenue on cash basis or accrue basis?

Question

Muhammad Afaq · Answer

The firms practice  accounting treatment on accrual  basis , therefor, we recognize revenue on accrued basis.

Muhammad Zuhair Shah · Answer

Normally it is recorded on accrual basis as per accounting principles. One exception to it is government accounts where revenues are recorded on cash basis.

James Mwangi · Answer

where the entity uses cash basis concept accrued revenues arenot included but for accrual concept they are recognised

Anna Mae Bardeloza · Answer

We record revenue on accrual basis. This follows the accrual basis of accounting.

Muhammad Kashif Amin · Answer

Income statement is being prepared on accrual accounting basis, therefore, the revenue is to be recorded on the basis of supply of goods or rendering of services irrespective of receipt of cash against those goods or services. Therefore, revenue should be recorded when all of the following criteria are met:

the associated significant risks and rewards have been transferred to buyer
the seller does not have continuing managerial involvement nor control over the goods sold
the amount of revenue can be measured reliably
it is probable that economic benefits will flow to the organization
the cost incurred or to be incurred in respect of transactions can be measured reliably

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In income statement, do we record revenue on cash basis or accrue basis?

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