Examlex
Which of the following is TRUE?
Accrual Basis
An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash transaction occurs.
Cash Basis
An accounting method where revenues and expenses are recorded only when cash is received or paid out, regardless of when the transactions occurred.
Cost Of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including material, labor, and manufacturing overhead expenses.
Accumulated Depreciation
The total amount of a tangible asset's cost that has been allocated as depreciation expense since the asset was put into use.
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