The system of accounting where revenues are recorded when services have been performed or products have been delivered to customers and expenses are recorded when they are incurred is called the cash basis of accounting.

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The system of accounting where revenues are recorded when services have been performed or products have been delivered to customers and expenses are recorded when they are incurred is called the accrual basis of accounting. The cash basis of accounting records revenues and expenses when cash is received or paid out.

The System of Accounting Where Revenues Are Recorded When Services