Under the accrual basis of accounting,expenses are
A)always paid in cash.
B)recorded only when paid.
C)recorded when incurred.
D)only relevant for the determination of net income.

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, expenses are recorded when they are incurred, regardless of whether or not they have been paid in cash. This is done in order to match expenses with the revenue they help to generate, providing a more accurate view of a company's financial health. Expenses therefore have an impact on both net income and cash flow, and are an important consideration for financial analysis.

Under the Accrual Basis of Accounting,expenses Are