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Suppose you house - sit for people while they are away on vacation. Most of your customers pay you immediately after you finish a job.
Suppose you housesit for people while they are away on vacation. Most of your customers pay you immediately after you finish a job. A few ask you to send them a bill. It is now June and you have collected $ from cashpaying customers. Your remaining customers owe you $ How much service revenue would you have under the a cash basis and b accrual basis of accounting? Which method of accounting provides more information about your housesitting business? Explain your answer.
How much service revenue would you have under the a cash basis and b accrual basis?
a Cash basis
b Accrual basis
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