Company ABC provides a service to client XYZ however does no

Company ABC provides a service to client XYZ, however, does not receive payment at time of completion. Does ABC have any revenue? Is revenue cash or some other asset? Which accounting principle applies to this question? Search entries or author Unread

Solution

Yes, ABC have Revenue for providing service to XYZ

Revenue is not cash but other Asset ( Sundry Debtor)

Revenue recognition principle applies to this question.

Revenue recognition principle = Under accrual Basis of accounting revenues are recognized as soon as a service has been performed regardless of whether the money is actually received or not. thus this principle applies to this question.