If C&S, Inc. records expenses in the time period when incurred, they are using the:
A)cash basis of accounting.
B)accrual basis of accounting.
C)adjustment basis of accounting.
D)expense basis of accounting.

Question

Quizplus · Accepted Answer

If C&S, Inc. records expenses in the time period when incurred, they are using the accrual basis of accounting. This method recognizes revenues and expenses when they are earned or incurred, regardless of when cash is received or paid.