easy · Financial Accounting accounting-cycle-financial-statements
Aurora Logistics performs freight services in December and bills the customer $40,000. The customer pays the full amount in January.
Under the accrual basis of accounting, when should Aurora Logistics recognize the $40,000 in revenue?
- Only when the company pays its own drivers for the job.
- In January, when the cash was received.
- Half in December and half in January.
- In December, when the service was performed.
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