Implicit transactions are an integral part of _____.
A)accrual basis accounting
B)cash basis accounting
C)not-for-profit accounting
D)all of these answers are correct

Question

Quizplus · Accepted Answer

Implicit transactions are transactions that aren't directly recorded in a company's accounting system. Instead, they are recorded indirectly through the recognition of changes in assets and liabilities. This is a characteristic of accrual basis accounting, which records transactions as they occur, not when payments are received or made. Cash basis accounting and not-for-profit accounting may not utilize implicit transactions as extensively as accrual basis accounting.

Implicit Transactions Are an Integral Part of _____