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Filda Agatha
on Nov 15, 2024

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Under the accrual basis of accounting, expenses are only recognized when they are paid.

Accrual Basis

Accrual Basis is an accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is received or paid.

Expenses Recognized

Costs that have been incurred in an accounting period and are matched with revenues in the same period, affecting a company's income statement.

  • Recognize the differences between the accrual basis and the cash basis of accounting.
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Nicholas MillerNov 17, 2024
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