Accrual Accounting:Revenue Recognition For a sale of goods to be recognized as revenue, while:a. The amount of revenue and the costs incurred or to be incurred should be reliably measurable.b. It is possible that the economic benefits (in most cases, cash) from the sale will flow to the seller

As per the accrual concept, the revenue is recognized when ___________, and expense is recognized when ____________.

Accrual basis of accounting is a system where:Question 5Answera.The receipts are recorded when cash is not received while expenditures are recorded only when cash is paidb.The receipts are recorded only when cash is received while expenditures are recorded only when cash is paidc.Revenue is recorded when there is commitment and expenditure recorded when services is received.d.Revenue recorded when earned and expenditures recorded when benefits are received

The special feature of accrual basis of accounting is *a. recording expenses only when cash is paidb. recording revenues only when cash is receivedc. recording adjustments only if it has a favorable effect on the company’s incomed. recording revenues and expenses when they are earned and incurred regardless of when cash is received or paid.

Using accrual accounting, expenses are recorded and reported only: A. when they are incurred and paid at the same time. B. if they are paid before they are incurred. C. when they are incurred whether or not cash is paid. D. if they are paid after they are incurred.

Accounting profits and cash flows are:Group of answer choicesgenerally the same since accounting profits reflect when the cash flows are received.generally not the same since accrual accounting allows for revenue recognition separate from the receipt of cash flows.generally not the same because cash inflows occur before revenue recognition.generally the same since they reflect current laws and accounting standards.