Accounting Multiple Choice Question – 17 March 2025

Using the accruals basis of accounting, revenue is recorded and reported only when?

Select ONE answer:

1. Goods or services are delivered whether or not cash has been received
2. Cash is received at the time goods or services are delivered
3. Cash is received whether or not goods or services have been delivered
4. Cash is received after goods or services have been delivered

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Revenue is recorded when goods or services are delivered whether or not cash has been received.
2. Not correct
3. Not correct
4. Not correct

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