The cash basis of accounting recognizes the impact of transactions in the period when:
A) revenues and expenses occur
B) the accounting equation increases
C) the transaction occurs
D) cash is received or disbursed

Question

Quizplus · Accepted Answer

The cash basis of accounting records revenues and expenses only when cash is actually received or paid, not when they are incurred.

The Cash Basis of Accounting Recognizes the Impact of Transactions