The cash basis of accounting is an accounting system in which revenues are reported when cash is received and expenses are reported when cash is paid.

Question

Quizplus · Accepted Answer

In the cash basis of accounting, revenues and expenses are recognized based on cash transactions, rather than when they are earned or incurred. This means that revenue is only recognized when cash is received and expenses are only recognized when cash is paid out.

The Cash Basis of Accounting Is an Accounting System in Which