Which of the following is TRUE?
A)Accrual accounting records expenses when incurred. Cash- basis accounting records expenses when cash is paid.
B)Accrual accounting records revenue when services are rendered. Cash- basis accounting records revenue when cash is received.
C)Accrual accounting is required by Australian accounting standards.
D)All of the above are true.

Question

Quizplus · Accepted Answer

Accrual accounting records expenses and revenues when they are incurred and earned, respectively, regardless of when cash transactions occur. Cash-basis accounting records transactions only when cash changes hands. Accrual accounting is required by Australian accounting standards for most businesses.

Which of the Following Is TRUE