comparing cash and accrual basis accounting for expenses Answer comparing cash a

Question

comparing cash and accrual basis accounting for expenses Answer comparing cash and accrual basis accounting for expenses Answer comparing cash and accrual basis accounting for expenses Answer a. cash basis? b. accrual basis? 2 Comparing cash and accrual basis accounting for revenues Peaceful Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Peaceful Home has collected $1,000 from cash-paying customers. Peaceful Homes remaining customers owe the business $1,400. How much service revenue would Peaceful Home have for the year under the a cash basis? b. accrual basis?

Explanation / Answer

under cash basis revenue will be equal to what is collected in cash i.e $1000

under accrual basis revenue will be equal to the amount collected & what is owe i.e $2400

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