The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting.

Question

Quizplus · Accepted Answer

The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the accrual basis of accounting. The cash basis of accounting records revenues and expenses when cash is received or paid out.

The System of Accounting Where Revenues Are Recorded When They