LO4 Under the cash basis of accounting, revenue is recorded whenit is received in...

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Accounting

LO4 Under the cash basis of accounting, revenue is recorded whenit is received in cash, and expenses are recorded when they arepaid in cash. Under the accrual basis of accounting, revenue isrecorded when earned, even if cash is received at an earlier or alater date, and expenses are recorded when incurred, even if cashis to be paid at an earlier or a later date. Considering thefollowing events, match which month the revenue or expenses wouldbe recorded using the accounting method specified.
Collins Company uses the accrual basis of accounting. Craneprepays cash in November for insurance that covers the followingmonth, December, only.
Emily's Natural Company uses the accrual basis of accounting.Emily’s Natural makes a sale to a customer in June but does notexpect payment until September.
Patricia's Printing uses the cash basis of accounting.Patricia’s receives cash from customers in March for services to beperformed in June.
Wesley's Travel uses the cash basis of accounting. Wesleyprepays cash in January for insurance that covers the followingmonth, February, only.
a)January
b)March
c)June
)December

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Please give positive ratings so I can keep answering It would help me a lot Please comment if you have any query Thanks Collins Company uses the accrual basis of accounting Crane prepays cash in November for insurance that covers the following month See Answer

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In: AccountingLO4 Under the cash basis of accounting, revenue is recorded whenit is received in cash,...LO4 Under the cash basis of accounting, revenue is recorded whenit is received in cash, and expenses are recorded when they arepaid in cash. Under the accrual basis of accounting, revenue isrecorded when earned, even if cash is received at an earlier or alater date, and expenses are recorded when incurred, even if cashis to be paid at an earlier or a later date. Considering thefollowing events, match which month the revenue or expenses wouldbe recorded using the accounting method specified.Collins Company uses the accrual basis of accounting. Craneprepays cash in November for insurance that covers the followingmonth, December, only.Emily's Natural Company uses the accrual basis of accounting.Emily’s Natural makes a sale to a customer in June but does notexpect payment until September.Patricia's Printing uses the cash basis of accounting.Patricia’s receives cash from customers in March for services to beperformed in June.Wesley's Travel uses the cash basis of accounting. Wesleyprepays cash in January for insurance that covers the followingmonth, February, only.a)Januaryb)Marchc)June)December