The Cash basis of accounting is a system where:

Question

Question 1Answer

a.
The receipts are recorded when service is received while expenditures are recorded when cash is paid

b.
The receipts are recorded only when cash is received while expenditures are recorded only when cash is paid

c.
Revenue recorded when earned and expenditures recorded when benefits are received

d.
The receipts are recorded when cash is not received while expenditures are recorded when cash is paid

Answer 1

b. The receipts are recorded only when cash is received while expenditures are recorded only when cash is paid