The Accruals Concept Flashcards
1
Q
How does cash accounting recognise income?
A
When cash is received from a customer
2
Q
How does cashing accounting recognise an expense?
A
When payment is made to a supplier
3
Q
How does accruals accounting recognise income?
A
As it is earned (when the goods/service has been provided
4
Q
How does accruals accounting recognise an expense?
A
When the entity receives the benefit
