Under cash-basis accounting,an expense is recorded ONLY when cash is paid out.

Name: Under cash-basis accounting,an expense is recorded ONLY when cash is paid out.
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Cash-basis accounting only records expenses when cash is actually paid out, regardless of when the expense was incurred. This is different from accrual accounting, which records expenses when they are incurred, regardless of when payment is made.

Under Cash-Basis Accounting,an Expense Is Recorded ONLY When Cash Is