Which of the following statements is true regarding the accrual basis of accounting? A) Revenues and expenses are recognized when cash is received or paid. B) Revenues and expenses are recognized when the transaction occurs, regardless of when cash is received or paid. C) Only revenues are recognized when cash is received, while expenses are recognized when cash is paid. D) Only expenses are recognized when cash is received, while revenues are recognized when cash is paid.
Which of the following statements is true regarding the accrual basis of accounting? A) Revenues and expenses are recognized when cash is received or paid. B) Revenues and expenses are recognized when the transaction occurs, regardless of when cash is received or paid. C) Only revenues are recognized when cash is received, while expenses are recognized when cash is paid. D) Only expenses are recognized when cash is received, while revenues are recognized when cash is paid.
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter5: Closing Entries And The Post-closing Trial Balance
Section: Chapter Questions
Problem 5QY: Under the cash basis of accounting, which of the following statements is true? a. Revenue is...
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Question:
Which of the following statements is true regarding the accrual basis of accounting?
A) Revenues and expenses are recognized when cash is received or paid.
B) Revenues and expenses are recognized when the transaction occurs, regardless of when cash is received or paid.
C) Only revenues are recognized when cash is received, while expenses are recognized when cash is paid.
D) Only expenses are recognized when cash is received, while revenues are recognized when cash is paid.
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