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QuickBooks accountant records revenue when an invoice is generated even though cash has not been received....

QuickBooks accountant records revenue when an invoice is generated even though cash has not been received. Please consider the following, if business entity provided service revenue to a customer and collected cash immediately, will the business entity use invoice to book the transaction as well. Please comment.

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The concept being discussed here is accrual method of accounting and cash basis of accounting. Under accrual method of accounting, the revenue is recorded when the transaction occurs irrrespective of when cash is received. If the business entity provides service and collects cash immediately, it might still wait for a valid invoice to be generated and sent to the customer. Later on, the transaction will be recorded and the cash collection shall be matched to the invoice.

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