What Is the Difference Between the Accrual Basis and the Cash

question 17

Multiple Choice

What is the difference between the accrual basis and the cash basis of accounting?

• A)Accrual basis records revenue when cash is received and cash basis matches expenses with the revenues it generates.
• B)Accrual basis records revenue when cash is received and the cash basis records revenue when it is earned.
• C)Accrual basis matches expenses with the revenues it generates and cash basis records revenue when cash is received.
• D)Accrual basis records expenses when cash is paid and cash basis records expenses in the accounting period,it is incurred.

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