Under cash-basis accounting,the timing of cash inflows and outflows exactly matches the reporting of revenues and expenses in the income statement.

Question

Quizplus · Accepted Answer

In cash-basis accounting, revenue and expenses are recognized only when cash is received or paid out, respectively. Therefore, the timing of cash inflows and outflows exactly matches the reporting of revenues and expenses in the income statement.

Under Cash-Basis Accounting,the Timing of Cash Inflows and Outflows Exactly