Accrual Accounting Records Transactions ONLY When Cash Is Received or Paid

question 133

True/False

Accrual accounting records transactions ONLY when cash is received or paid.

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Definitions:

Office Equipment

Assets used in an office environment to facilitate operations, such as computers, printers, and furniture, which are subject to depreciation.

Cash Proceeds

The amount of money received from transactions such as sales, financing, or the sale of assets.

Amortization

Amortization is the process of spreading the cost of an intangible asset over its useful life, similar to depreciation but for non-physical assets.