If a company is using the accrual basis accounting method, when should it record its earned revenue? a. when cash is received, even though services may be rendered at a later date b. when services are rendered, even though cash may be received at a later date c. when services are completely rendered and cash is received d. when cash is received, 30 days after the completion of the services

b

Under the accrual basis of accounting, expenses are matched with the revenues related to it and/or are reported when the expense occurs, and not just when the cash is paid. The company should record its earned revenue when services are rendered. Payment may come at a later date.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total