Question

The primary difference between the accrual basis and the cash basis of accounting is: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

Answer 1

Answer:

Both of these answers are the primary differences.

1.The accrual basis records revenues when services or products are delivered and records expenses when incurred.

And

2.The cash bases records revenues when cash is received and records expenses when cash is paid.

Explanation:

Under the cash basis, entries in the book of accounts are made when cash is received or paid and not when the receipt or payment has become due.

While

Under the accrual basis, however, revenues and costs are recognised in that period in which they occur rather when they are paid

Accrual basis is more generally accepted than cash basis, as it gives a truer image of enterprise performance in an accounting period.