Using accrual accounting, expenses are recorded and reported only
A)when they are incurred whether or not cash is paid.
B)when they are incurred and paid at the same time.
C)if they are paid before they are incurred.
D)if they are paid after they are incurred.

Question

Quizplus · Accepted Answer

Accrual accounting records and reports expenses when they are incurred, regardless of whether or not cash is paid at the time. This allows for a more accurate representation of a company's financial performance and obligations, as it takes into account expenses that may not have been paid yet but are still owed.

Using Accrual Accounting, Expenses Are Recorded and Reported Only