According to accrual accounting,revenues are recognized when earned and expenses are recognized when incurred.

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Quizplus · Accepted Answer

This statement is true according to accrual accounting principles. Revenues are recognized when they are earned, meaning when the goods or services have been delivered or performed, regardless of when the payment is received. Similarly, expenses are recognized when they are incurred, meaning when the goods or services have been received or utilized, regardless of when the payment is made. This helps to provide a more accurate picture of a company's financial performance and position over an accounting period.

According to Accrual Accounting,revenues Are Recognized When Earned and Expenses