If revenues are recognized and recorded when earned, the company is using the:
A)cash basis of accounting.
B)accrual basis of accounting.
C)adjustment basis of accounting.
D)the expense basis of accounting.

Question

Quizplus · Accepted Answer

The accrual basis of accounting is when revenues and expenses are recognized when they are earned or incurred, rather than when cash is received or paid. This is the generally accepted accounting principle used by most companies.

If Revenues Are Recognized and Recorded When Earned, the Company