Question

How is revenue treated for purposes of accounting?
A. As a liability
B. As an asset
C. As a contra-account
d. As part of owner 'equity

Answer 1

Explanation:

The cash method of accounting recognising the revenue and expenses when cash is exchanged. For a seller using the cash method, revenue on the sale is not recognised until payment is collected. Just like revenues, expenses are recognised are recorded when cash is paid.