Question

The system of preparing financial statements based on recognizing revenues when the cash is received and reporting expenses when the cash is paid is called: A. Accrual basis accounting B. Operating cycle accounting C. Cash basis accounting D. Revenue recognition accounting E. Current basis accounting

Answer 1

Answer:

C

Explanation:

According to my research on different accounting terminology, I can say that based on the information provided within the question this refers to Cash basis accounting. Like mentioned in the question this is a method of recording revenue only when the transaction is accepted and the payment is completely received. This goes the same for payments made, they are only recorded once the payment has been paid by the company and received by the receiver.

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