Using accrual accounting, expenses are recorded and reported only
A)when they are incurred for the purpose of generating revenue, 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

Under accrual accounting, expenses are recorded when they are incurred, regardless of when the cash payment is made. This approach matches expenses with the revenues they help to generate, providing a more accurate picture of a company's financial performance.

Using Accrual Accounting, Expenses Are Recorded and Reported Only