Which accounting method records a sale when the payment is received from the customer and records the expense when the bill is paid?
A) Cash basis
B) Accrual basis
C) Completed-contract method
D) Calculation basis

Question

Quizplus · Accepted Answer

The cash basis accounting method records revenues and expenses only when cash is exchanged, meaning sales are recorded when payment is received and expenses are recorded when bills are paid.

Which Accounting Method Records a Sale When the Payment Is