When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?
A)under the cash basis of accounting
B)under the accrual basis of accounting
C)under the adjusting method of accounting
D)under the finance method

Question

Quizplus · Accepted Answer

Under the cash basis of accounting, revenues and expenses are recognized in the same accounting period as cash receipts and payments occur. This means that transactions are recorded when cash is received or paid, rather than when the revenue is earned or the expense is incurred, which is the case under the accrual basis of accounting. The adjusting method of accounting and finance method are not recognized accounting bases.

When Are Revenues and Expenses Recognized in the Same Accounting