Companies that use accrual accounting recognize revenues and expenses at the time that cash is paid or received.

Name: Companies that use accrual accounting recognize revenues and expenses at the time that cash is paid or received.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Companies that use accrual accounting recognize revenues and expenses when they are incurred, regardless of when cash is paid or received. This means that revenues and expenses are recorded when the company has earned or incurred them, not just when cash is exchanged.

Companies That Use Accrual Accounting Recognize Revenues and Expenses at the Time