Asked by Vaughn Lawrence on May 06, 2024
Verified
If accounts receivable increase during a period revenues on an accrual basis are ______________ than revenues on a cash basis.
Accrual Basis
An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur.
Cash Basis
An accounting method where revenues and expenses are recognized only when cash is received or paid.
- Assess the effect of variations in current asset and liability accounts on the movement of cash flows.
- Differentiate between accrual basis accounting and cash basis accounting with respect to cash flow management.
Verified Answer
MM
Learning Objectives
- Assess the effect of variations in current asset and liability accounts on the movement of cash flows.
- Differentiate between accrual basis accounting and cash basis accounting with respect to cash flow management.