During November 2015 Posner Inc performs consulting services

During November 2015, Posner Inc. performs consulting services. The client does not pay Posner until January, 2016.

Using the accrual basis of accounting, the revenue is reported in November 2015.

Using the cash basis of accounting, the revenue is reported in November 2015.

Using the accrual basis of accounting, the revenue is reported in January 2016.

Using the accrual basis of accounting, the revenue is reported when Asler\'s expenses are paid.

Solution

During November 2015, Posner Inc. performs consulting services. The client does not pay Posner until January, 2016.

So answer is a) Using the accrual basis of accounting, the revenue is reported in November 2015.