Using accrual accounting, expenses are recorded and reported only
A) when they are incurred for the purpose of generating revenue, whether or not cash is paid.
B) when they are incurred and paid at the same time.
C) if they are paid before they are incurred.
D) if they are paid after they are incurred.

Question

Quizplus · Accepted Answer

In accrual accounting, expenses are recorded when they are incurred to generate revenue, regardless of when cash is paid.

Using Accrual Accounting, Expenses Are Recorded and Reported Only