Question

The John Marketing Company provides advertising services to an investment company in year A but receives advertising fee in year B. The John Marketing Company recognizes this revenue in year A. This action of John Marketing Company is justified b

Answer 1

Answer:

I don't know

Answer 2

Accrual-basis of accounting

Explanation:

• This basis of the accounting is the method of recording the revenues when it is earned & expenses sustain.

• In this accounting , receivable and payable both might be recorded even in absence of cash receipt.

• This accounting is different from cash-basis under which revenue recorded only when cash has received & expenses recorded when cash has paid.
• For this company of John marketing, the action is justified by the accrual-basis of accounting.