Using Accrual Accounting System, Expenses And Revenues Are Recorded And Reported Only
Using Accrual Accounting, Revenues Are Recorded And Reported Only U nder Accrual Accounting System , we recorded and reported Expenses at t h e time w he n t hese are i ncurred or incurred to produce or earn Revenues for t h e b usi ness w hether the cash is paid or not. For example, t he expe nses of April incurred s hould b e recorded a nd reported to Income Statement in April, event hough, the payme nt is made in May. Using Accrual Accounting, Revenues Are Recorded And Reported Only U nder Accrual System of Accounting, revenues or income are recorded and reported to financial statements at t h e time w he n t hese are ear ned or goods sold or services rendered to customers w he t h er t he cash is received or not. For Example, t he reve nue earned in Marc h is recorded a nd reported in t h is period event hough the payme nt is received in advance in Feb ruary i.e., b efore March as the goods sold or services re ndered in Marc h a nd not in Feb ruary. ...