Fil in the blanks with options given in below:
Accrual basis accounting recognizes ______ when the service or product is delivered and records _ when ____ in order to adhere to the matching principle.
1. equity/revenues/expenses
2. revenues/expenses/liabilities
3. incurred/paid

Accrual basis is one of the methods used in preparing Financial statement. It records transaction when they are incurred or when they happen irrespective of whether cash has been paid or not.

Cash basis is a another one. It recognizes transactions only when the cash has been given.

Accrual basis accounting recognizes REVENUE when the service or product is delivered and records REVENUE when INCURRED in order to adhere to the matching principle

Fil in the blanks with options given in below: Accrual basis accounting recognizes __________ when the service or product is delivered and records _________ when ________ in order to adhere to the matching principle. 1. equity/revenues/expenses 2. revenues/expenses/liabilities 3. incurred/paid

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Fil in the blanks with options given in below:
Accrual basis accounting recognizes ______ when the service or product is delivered and records _ when ____ in order to adhere to the matching principle.
1. equity/revenues/expenses
2. revenues/expenses/liabilities
3. incurred/paid