Which of the following expressions correctly describes when revenues and expenses are recognized under accrual basis accounting?
A)Revenues when cash is received;expenses when cash is paid.
B)Revenues when cash is received;expenses when the expense is incurred.
C)Revenues when the performance obligation is satisfied;expenses when the expense is incurred.
D)Revenues when the performance obligation is satisfied;expenses when cash is paid.

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting,revenues are recognized when the performance obligation is satisfied and expenses are recognized in the same period as the revenues with which they can be reasonably associated.

Which of the Following Expressions Correctly Describes When Revenues and Expenses