Orange County Shop follows the revenue recognition principle. Orange County services a bicycle on July 31. The customer picks up the bike on August 1 and mails the payment to Orange County on August 5. Orange County receives the check in the mail on August 6. When should Orange County show that the revenue was recognized?

a. July 31

b. August 1

c. August 5

d. August 6

Which of the following is in accordance with generally accepted accounting principles?

a. Accrual-basis accounting

b. Cash-basis accounting

c. Both accrual-basis and cash-basis accounting

d. Neither accrual-basis nor cash-basis accounting