Under the cash basis of accounting, expenses are reported when cash is spent, and revenues are recorded when a business receives cash for services or goods. In contrast, under the accrual basis of accounting, a business’s revenues are recorded when products or services are sold, irrespective of the date cash is received. Additionally, expenses are reported when incurred, regardless of when money is paid out.
How are revenues and expenses reported on the income statement under the cash basis of accounting and the accrual basis of accounting?
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Academic.Tips. (2023) 'How are revenues and expenses reported on the income statement under the cash basis of accounting and the accrual basis of accounting'. 12 February.
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Academic.Tips. (2023, February 12). How are revenues and expenses reported on the income statement under the cash basis of accounting and the accrual basis of accounting? https://academic.tips/question/how-are-revenues-and-expenses-reported-on-the-income-statement-under-the-cash-basis-of-accounting-and-the-accrual-basis-of-accounting/
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Academic.Tips. 2023. "How are revenues and expenses reported on the income statement under the cash basis of accounting and the accrual basis of accounting?" February 12, 2023. https://academic.tips/question/how-are-revenues-and-expenses-reported-on-the-income-statement-under-the-cash-basis-of-accounting-and-the-accrual-basis-of-accounting/.
1. Academic.Tips. "How are revenues and expenses reported on the income statement under the cash basis of accounting and the accrual basis of accounting?" February 12, 2023. https://academic.tips/question/how-are-revenues-and-expenses-reported-on-the-income-statement-under-the-cash-basis-of-accounting-and-the-accrual-basis-of-accounting/.
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Academic.Tips. "How are revenues and expenses reported on the income statement under the cash basis of accounting and the accrual basis of accounting?" February 12, 2023. https://academic.tips/question/how-are-revenues-and-expenses-reported-on-the-income-statement-under-the-cash-basis-of-accounting-and-the-accrual-basis-of-accounting/.
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"How are revenues and expenses reported on the income statement under the cash basis of accounting and the accrual basis of accounting?" Academic.Tips, 12 Feb. 2023, academic.tips/question/how-are-revenues-and-expenses-reported-on-the-income-statement-under-the-cash-basis-of-accounting-and-the-accrual-basis-of-accounting/.
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