The accounting basis that records revenues when goods or services are provided to customers and expenses with related revenues is referred to as:
A)Cash-basis.
B)Matching-basis.
C)Accrual-basis.

Question

Quizplus · Accepted Answer

The accrual basis of accounting records revenues when they are earned, even if the cash has not been received, and records expenses when they are incurred, even if the cash has not been paid. This basis of accounting is required by generally accepted accounting principles (GAAP) in order to provide a more accurate picture of a company's financial performance and position. The cash basis records revenues and expenses based on when cash is received or paid, and the matching basis attempts to match expenses with the revenues they generate, but is not as precise as the accrual basis.

The Accounting Basis That Records Revenues When Goods or Services