Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
Which accounting method recognizes and records financial transactions when they occur, regardless of when the actual cash is exchanged?
Which accounting method recognizes and records financial transactions when they occur, regardless of when the actual cash is exchanged?
- Accrual accounting (correct)
- Cash accounting
- Managerial accounting
- Double-entry accounting
When is revenue recognized under accrual accounting?
When is revenue recognized under accrual accounting?
- When goods are delivered or services are provided (correct)
- When expenses are recognized
- When cash is received
- When payment is expected
What is the matching principle in accrual accounting?
What is the matching principle in accrual accounting?
- Recognizing revenues or expenses after cash has been received or paid
- Recognizing expenses in the period in which they contribute to generating revenue (correct)
- Recognizing expenses when payment is expected
- Recognizing revenues or expenses before cash changes hands
What are accruals in accrual accounting?
What are accruals in accrual accounting?
Signup and view all the answers
What are deferrals in accrual accounting?
What are deferrals in accrual accounting?
Signup and view all the answers
