Under the accrual basis of accounting,the impact of transactions is recorded when cash is received or paid.

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, transactions are recorded when they occur, regardless of when cash is received or paid. This means that revenue is recorded when it is earned, even if payment is not received until a later date, and expenses are recorded when they are incurred, even if payment is not made until a later date.

Under the Accrual Basis of Accounting,the Impact of Transactions Is