11

If a car is serviced on 31 May and an invoice is issued, the owner picks up the car on 31 May, the owner sends a cheque to the servicing firm on 4 June, and the firm banks the cheque on 7 June. Under accrual accounting income is recognised by the servicing firm on:

Select one:

a. 7 June

b. Any of the dates may be used

c. 31 May

d. Only when the cash payment is received

e. 4 June