What does accrual accounting record?
What does accrual accounting record?
Revenue and expenses when they are earned or incurred
Depreciation and amortization expenses
Revenue and expenses when cash is received or paid
Cash transactions only
Accrual accounting records revenue and expenses when they are earned or incurred, regardless of when the cash is received or paid. This method aims to provide a more accurate representation of a company's financial condition by matching revenues and expenses to the period in which they occurred. It also includes recording depreciation and amortization expenses to allocate the cost of long-term assets over their useful lives.
ANSWER FROM RESPONES ONLY
- Revenue and expenses when they are earned or incurred
- Depreciation and amortization expenses