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

Name: Accrual accounting records the impact of both cash and noncash business transactions as they occur.
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Question

Quizplus · Accepted Answer

Accrual accounting recognizes revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid. This means that noncash transactions, such as credit sales and depreciation, are also recorded in the financial statements.

Accrual Accounting Records the Impact of Both Cash and Noncash