Basis of accounting determines which of the following?
A)When transactions and events are recognized.
B)What transactions and events will be reported.
C)Where transactions and events will be reported.
D)Why transactions and events will be reported.

Question

Quizplus · Accepted Answer

Basis of accounting determines when transactions and events are recognized, such as cash basis accounting recognizes transactions when cash is received or paid, while accrual basis accounting recognizes transactions when they occur, regardless of cash flows. The basis does not determine what, where, or why transactions and events will be reported.

Basis of Accounting Determines Which of the Following