According to the accrual basis of accounting, how are expenses treated?
A) They are not tax deductible.
B) They are matched with the revenues they helped generate.
C) They are listed on the firm's balance sheet as liabilities.
D) They are recognized as soon as cash is paid.

Question

Quizplus · Accepted Answer

According to the accrual basis of accounting, expenses are matched with the revenues they helped generate. This means that expenses are recognized when they are incurred, regardless of when payment is made. This allows for a more accurate representation of the company's financial performance during a given period.

According to the Accrual Basis of Accounting, How Are Expenses