In accrual accounting, revenue may be eamed prior to or after cash is received. True False

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In accrual accounting, revenue may be eamed prior to or after cash is received. True False

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Answer 1

Answer #1

TRUE, The answer is right.

According to accrual principle revenue may be recorded even before it is actually received or made .

Receiving cash is not the yardstick to record the transaction in accrual system. any amount received in advance or paid in advance is an example of following accrual system of accounting.

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