00:01
Hi, in this video we are to compute for the amount of revenue that should be reported if we are following the cash basis.
00:10
Now cash basis, let me just recall, in recording revenues, you only record your revenue or your income when your customer pays you and you have actually received that amount of money.
00:29
In simpler words, you only record your income when you have received the money or the cash.
00:39
That's why it's called cash basis.
00:41
Regardless of when you earned that service or it regardless of when you have delivered a product.
00:50
So long as you have already received the cash, then you are to record your income.
00:57
So record revenue or income upon receipt of cash, regardless of when you have earned a service or when you have delivered a specific product.
01:23
So the key point or the keyword is, of course, cash.
01:28
So long as you have received your cash, then you record your revenue.
01:31
Now in a problem, how much of revenue we are to receive or sorry, we are to record if we're looking or if we're following the cash basis.
01:43
Now we are given a revenue under accrual basis...