Describe the accrual basis of accounting
What will be an ideal response?
The accrual basis, or method, of accounting is a system of measuring and reporting revenues when they are earned and expenses in the accounting period when incurred. Revenues are considered earned when the earnings process is completed, such as when goods are shipped or services performed, and expenses are considered incurred when assets are consumed or liabilities are created in the process of earning revenue.
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The body of a press release opens with a dateline that includes the city and state from which the release is issued and the release date
Indicate whether the statement is true or false
Bestor Bookkeeping has a $150,000 compensating balance loan with its bank. The terms of the loan call for Bestor to keep 8% of the loan as a compensating balance and pay interest at an annual rate of 7.50% on the entire amount
If the firm borrows the maximum amount for one year, how much interest is due at the end of the year? A) $10,650 B) $11,250 C) $12,375 D) $14,250