Which of the following statements is true in regard to accrual accounting?
A) Revenue is recorded only when cash is received.
B) Expenses are recorded when they are incurred.
C) Revenue is recorded in the period when it is earned.
D) Expenses are recorded when they are incurred and revenue is recorded in the period when it is earned.

Question

Quizplus · Accepted Answer

Revenue is recognized when earned and expenses are recognized when incurred, regardless of when cash is exchanged.

Which of the Following Statements Is True in Regard to Accrual