An Expense Is Recorded Under the Cash Basis Only When

question 183

Multiple Choice

An expense is recorded under the cash basis only when

• A) services are performed.
• B) it is earned.
• C) cash is paid.
• D) it is incurred.

---

Definitions:

Short-Term Contracts

Agreements that have a limited duration, typically lasting for a few days, weeks, or months.

Warehousing

The process of storing goods in a dedicated facility to ensure their availability for future distribution or sale.

Transportation Requirements

Specifications or conditions that need to be met for the movement of goods or people, including mode of transport, capacity, timing, and infrastructure needs.

Graphic Device

Hardware used to create, display, or manage visual content, such as a graphics card in a computer.