Asked by Brandon Dagley on Apr 25, 2024
Verified
In accrual basis accounting, revenues are recorded when earned.
Accrual Basis Accounting
A method of accounting that records revenues when earned and expenses when incurred, regardless of when cash is exchanged.
Revenues
The income generated from normal business operations and includes discounts and deductions for returned merchandise.
- Grasp the concept of accrual basis accounting.
Verified Answer
JS
Justin Scott6 days ago
Final Answer :
True
Explanation :
In accrual basis accounting, revenues are recorded when they are earned, regardless of when the cash is actually received. This method matches revenues to the time periods in which they are earned.
Learning Objectives
- Grasp the concept of accrual basis accounting.
Related questions
Accruals Are Needed When an Unrecorded Expense Has Been Incurred ...
In Its First Year of Operations,Grace Company Reports the Following ...
All of the Following Statements Regarding Profit Margin Are True ...
Accruals Are Needed When an Unrecorded Expense Has Been Incurred ...
T-Account Analysis Can Be Used to Gain Insights into Why ...