A method of accounting in which income or expenses are recorded at the time they are incurred, rather than when they are paid, is called ______.
A) accrual basis
B) cash basis
C) time basis
D) expense basis

Question

Quizplus · Accepted Answer

Accrual basis accounting records income and expenses when they are incurred, regardless of when the cash is actually received or paid. This contrasts with cash basis accounting, which records transactions only when cash changes hands.

A Method of Accounting in Which Income or Expenses Are