Accrual Basis Accounting Records Revenues When Earned and Expenses When

question 68

True/False

Accrual basis accounting records revenues when earned and expenses when incurred, regardless of when the related cash is received or paid.

---

Definitions:

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the skin and nervous system.

Lens

Transparent biconvex structure lying between the iris and the vitreous humor.

Mesoderm

The middle layer of an embryo in early development that gives rise to muscles, bones, and the circulatory system.

Autonomic Neurons

Nerve cells that control involuntary functions of the body, such as heart rate, digestion, and respiratory rate.