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.

The Cash basis of accounting is a system where:Question 7Answera.The receipts are recorded only when cash is received while expenditures are recorded only when cash is paidb.Revenue recorded when earned and expenditures recorded when benefits are receivedc.The receipts are recorded when cash is not received while expenditures are recorded when cash is paidd.The receipts are recorded when service is received while expenditures are recorded when cash is paidClear my choice

Accrual basis accounting:Multiple ChoiceIncreases the comparability of financial statements from period to period.Is flawed because it gives complete information about cash flows.Recognizes revenues when received in cash.Recognizes expenses when paid in cash.Eliminates the need for adjusting entries at the end of each period.

Under the accrual basis of accounting, revenues are reported in the accounting period when the

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.