which-statement-best-describes-the-difference-between-cash-basis-and-accrual-bas

Question

Which statement best describes the difference between cash basis and accrual basis accounting?

Accepted Answer

Accrual basis recognizes revenues and expenses when they are incurred, regardless of cash flow.

Answer

Cash basis recognizes revenues and expenses only when they are incurred.

Answer

Accrual basis recognizes revenues and expenses only when cash is received or paid.

Answer

Cash basis recognizes revenues and expenses when they are incurred, regardless of cash flow.