________ basis accounting means that revenues are recognized when cash is received and that expenses are recorded when cash is paid.________ basis accounting means that the financial effects of revenues and expenses are recorded when earned or incurred.

Cash Basis Accounting

A financial recording approach where earnings and outlays are only acknowledged upon the receipt or payment of cash.

Accrual Basis Accounting

A financial recording system in which earnings and expenditures are logged when they happen, not necessarily when the payment is made or received.