Cash vs accrual basis exercises
Compute results under both bases and see why they differ.
Item 1 of 6
Freeintermediate
Revenue: cash basis vs accrual basis
In March a business (1) performed and was paid for $3,400.00 of services, (2) performed $1,100.00 of services on account, (3) received $1,100.00 for services to be done in April, and (4) collected $1,500.00 for work done in February. Compute March revenue under each basis.