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The accrual basis of accounting records revenues when they are:

A. Collected

 

B. Earned

 

C. Contracted

 

D. Readily available for use

 

E. Both B & C

Accounting Accountancy
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Question added by Riaz Ahammed , Financial Accountant , UTC Climate Controls & Security
Date Posted: 2015/04/15
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Arslan Ali Khan ali
by Arslan Ali Khan ali , Accounts and Finance Assistant , Vertex Electronic pvt limited

B. earned

because income can not be recorded until it is virtually certain (above95%)

Mohammed Imran Shaikh Mohammed Yunus Shaikh
by Mohammed Imran Shaikh Mohammed Yunus Shaikh , Assistant Manager Accounts , Imerys

on accrual basis in accounting you can recognises revenue when they are earned, when the sale is executed or services are rendered 

Agabielesin Ilesanmin

Earned. Because,under the accrual basis of accounting, the receipt of cash and the payment of cash are not the focus of reporting revenues and expenses.

Riaz Ahammed
by Riaz Ahammed , Financial Accountant , UTC Climate Controls & Security

The accrual basis of accounting records revenues when they are (B.) Earned.

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