Final answer:
The equation for converting revenues from cash basis to accrual basis is adding the cash basis revenues to the revenue earned but not yet received.
Step-by-step explanation:
When converting revenues from cash basis to accrual basis, you need to account for both cash receipts and revenue earned but not yet received. To do this, you can use the following equation:
Accrual Basis Revenues = Cash Basis Revenues + Revenue Earned but Not Yet Received
For example, let's say the cash basis revenues are $200,000 and there is $85,000 revenue earned but not yet received. The accrual basis revenues would be:
- $200,000 + $85,000 = $285,000
So, the equation for converting revenues from cash basis to accrual basis is to add the cash basis revenues to the revenue earned but not yet received.