QuestionAugust 5, 2025

According to the generally accepted accounting principles (GAAP), when must transactions be recorded? a cash basis an accrual basis a future basis

According to the generally accepted accounting principles (GAAP), when must transactions be recorded? a cash basis an accrual basis a future basis
According to the generally accepted accounting principles
(GAAP), when must transactions be recorded?
a cash basis
an accrual basis
a future basis

Solution
4.1(90 votes)

Answer

an accrual basis Explanation 1. Identify GAAP Requirement GAAP requires that transactions be recorded when they occur, not necessarily when cash is exchanged. 2. Determine the Basis This aligns with the accrual basis, where revenues and expenses are recognized when earned or incurred, regardless of cash flow.

Explanation

1. Identify GAAP Requirement<br /> GAAP requires that transactions be recorded when they occur, not necessarily when cash is exchanged.<br /><br />2. Determine the Basis<br /> This aligns with the accrual basis, where revenues and expenses are recognized when earned or incurred, regardless of cash flow.
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