The cash basis method of accounting can be best described as: The recording of t
ID: 2727004 • Letter: T
Question
The cash basis method of accounting can be best described as:
The recording of transactions and adjustments so that debits equal credits.
The method that equates assets with liabilities and owners’ equity.
The method that recognizes revenue when money is received and expenses when money is paid.
The method that matches incurred expenses with related revenues when they are earned.
The recording of transactions and adjustments so that debits equal credits.
The method that equates assets with liabilities and owners’ equity.
The method that recognizes revenue when money is received and expenses when money is paid.
The method that matches incurred expenses with related revenues when they are earned.
Explanation / Answer
The cash basis method of accounting can best be described as the method that recognizes revenue when money is received and expenses when money is paid.