Bookkeeping Exercises
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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.