Asked by mohammad uzair on Jun 27, 2024
Verified
Using accrual accounting, expenses are recorded and reported only
A) when they are incurred, whether or not cash is paid
B) when they are incurred and paid at the same time
C) if they are paid before they are incurred
D) if they are paid after they are incurred
Accrual Accounting
An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when the cash is received or paid.
Incurred
Describes expenses that have been realized or experienced by a business or individual.
- Discern the essential tenets of accrual accounting, particularly the recognition of expenses and revenues.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
A
Explanation :
Accrual accounting records expenses when they are incurred, regardless of whether or not cash is paid at that time. This means that expenses are recognized when they are earned, rather than when the cash is actually exchanged.
Learning Objectives
- Discern the essential tenets of accrual accounting, particularly the recognition of expenses and revenues.