Under the accrual basis of accounting, expenses are only recognized when they are paid.

Name: Under the accrual basis of accounting, expenses are only recognized when they are paid.
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Under the accrual basis of accounting, expenses are recognized when they are incurred, not necessarily when they are paid. This means that an expense is recognized at the time the business receives goods or services, even if payment is made at a later date.

Under the Accrual Basis of Accounting, Expenses Are Only Recognized