Asked by Krishna Sriharsha Maramganti on Jul 04, 2024
Verified
Under the accrual system, revenue is recognized when cash is paid.
Accrual System
An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.
Revenue
The complete sum of earnings derived from selling goods or offering services that are central to a company's core business.
- Understand the accrual accounting principle including revenue recognition and expense recording.
Verified Answer
ZK
Zybrea KnightJul 07, 2024
Final Answer :
False
Explanation :
Under the accrual system, revenue is recognized when it is earned, not necessarily when cash is received.
Learning Objectives
- Understand the accrual accounting principle including revenue recognition and expense recording.