Tools-for-Business-Decision-Making-Ch-3-The-Accounting-Information-System
Revenue on an accrual-accounting basis must be both earned and realized (or realizable) before accountants recognize it in the income statement. Companies recognize revenue in cash-basis accounting only when they have received the cash. Is an accrual-basis or cash-basis recognition of revenue more relevant for evaluating the performance of a sales staff? Why?
Please answer in 200-300 words
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