Which of the e following is true of cash basis accounting?

Question

Quizplus · Accepted Answer

In cash basis accounting, revenue is recognized when cash is received, and expenses are recognized when cash is paid out, regardless of when the actual sale or purchase occurred. This means that credit sales are not recorded as revenue until the cash is received, distinguishing it from accrual basis accounting where revenue and expenses are recognized when they are earned or incurred, not necessarily when cash is exchanged.

Which of the E Following Is True of Cash Basis