Question

How are revenues and expenses reported on the income statement under (a) the cash basis of accounting and (b) the accrual basis of accounting? Answer this question with a minimum posting of 150 words that is complete, thoughtful, and written in Standard English.

Answer 1

Accocial basis of accounting - - -- * under the accocecal basis of aceanking, Revenues as reported on the income statement when they are camed, when the revenues ade cooned, beel Cash Ps not received the assels accounts receivabe well be recooded * Also under the accoual basis of accounting Expenses are sepooled on the pocome statemeo when they match up with the devencios being repoolee, or when they matchup a cost has no future benest that can be measured when an expense occurs & Caesh has not yet been pceed, a Palsflphy account celll also be wronda Cash basis of accounting & * under Cash boses of accounting, derencies are not reported m tho income stoelement until the cash Ps peceived * undeer Cash basis of accounting the expenses were not recognized unte1 the business pays the associalede expense.