An accountant is hired on February 20 to prepare a client's tax return

Accounting Nov 22, 2020

An accountant is hired on February 20 to prepare a client's tax return. The work is completed on March 8. The client pays for the services on April 1. Under the cash basis of accounting, when should the revenue be recorded? Multiple Choice February 20 Unable to determine from the data given April 1 March 8 O ? Half in February and half in March

Expert Solution

The correct option is (C)

Reason : Under cash basis of Accounting, only cash transaction are recorded in books of Accounts as and when they occur .

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