The accounting basis that records revenues when cash is received and expenses when cash is paid is referred to as:
A)Cash-basis.
B)Accrual-basis.
C)Matching-basis.

Question

Quizplus · Accepted Answer

The accounting basis that records revenues when cash is received and expenses when cash is paid is referred to as cash-basis accounting. This method is simpler than accrual-basis accounting as it does not require tracking accounts receivable or accounts payable.

The Accounting Basis That Records Revenues When Cash Is Received