Under accrual basis accounting, revenues are recognized when earned and expenses are recognized when incurred.

Name: Under accrual basis accounting, revenues are recognized when earned and expenses are recognized when incurred.
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Under accrual basis accounting, revenues and expenses are recognized when they are earned or incurred, regardless of when cash is exchanged. This enables more accurate financial reporting and allows for a better representation of a business's financial performance.

Under Accrual Basis Accounting, Revenues Are Recognized When Earned and Expenses