which-of-the-following-best-describes-the-difference-in-expense-recognition-betw

Question

Which of the following best describes the difference in expense recognition between accrual and cash basis accounting?

Accepted Answer

Accrual accounting recognizes expenses when the service is received; cash basis recognizes expenses when cash is paid.

Answer

Both accrual and cash basis recognize expenses when cash is paid.

Answer

Both accrual and cash basis recognize expenses when the service is received.

Answer

Accrual accounting recognizes expenses when cash is paid; cash basis recognizes expenses when the service is received.