Accrual-basis accounting records the impact of both cash and noncash transactions as they occur.

Name: Accrual-basis accounting records the impact of both cash and noncash transactions as they occur.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accrual-basis accounting records revenue when it is earned and expenses when they are incurred, regardless of when cash is exchanged. This means that both cash and noncash transactions are recorded as they occur. Therefore, the statement is true.

Accrual-Basis Accounting Records the Impact of Both Cash and Noncash