When are revenues and expenses recognized in the same accounting period that cash receipts and payments occur?

Question

Quizplus · Accepted Answer

Revenues and expenses are recognized in the same accounting period that cash receipts and payments occur under the cash basis of accounting. This method of accounting recognizes transactions only when cash is received or paid out, regardless of when the transaction was actually earned or incurred. It is a simple and straightforward method but is not considered as accurate as the accrual basis of accounting.

When Are Revenues and Expenses Recognized in the Same Accounting