Using accrual accounting, expenses are recorded and reported only
A) when they are incurred, whether or not cash is paid
B) when they are incurred and paid at the same time
C) if they are paid before they are incurred
D) if they are paid after they are incurred

Question

Quizplus · Accepted Answer

Accrual accounting records expenses when they are incurred, regardless of whether or not cash is paid at that time. This means that expenses are recognized when they are earned, rather than when the cash is actually exchanged.

Using Accrual Accounting, Expenses Are Recorded and Reported Only