Which reporting convention requires recording revenue and expenses when the transaction occurs, regardless of when cash changes hands?
A) Cost basis
B) Cash basis
C) Accrual basis

Question

Quizplus · Accepted Answer

The accrual basis of accounting requires recording revenue and expenses when the transactions occur, regardless of when cash is received or paid. This contrasts with the cash basis of accounting, where transactions are recorded only when cash is exchanged.

Which Reporting Convention Requires Recording Revenue and Expenses When the Transaction