Question

On Time Computer Repair uses accrual basis accounting. A computer was repaired on July 15. The customer picked up the computer August 1 and mailed the payment on August 5. On Time Computer Repair receved the check in the mail on August 10. The revenue should be recognized on which date? Multiple Choice (0) July 15 (0) August 1​

Answer 1

July 15

Step-by-step explanation:

Accrual accounting recognizes income on the date an invoice is created not when it is paid.

Cash accounting recognizes income on the date when the payment is received.