Comparing cash and accrual basis accounting for revenues


Question: Comparing cash and accrual basis accounting for revenues Secure 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, Secure Home has collected $700 from cash-paying customers. Secure Home's remaining customers owe the business $900. How much service revenue would Secure Home have for the year under the

a. cash basis?

b. accrual basis?

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Finance Basics: Comparing cash and accrual basis accounting for revenues
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