Match each term associated with accrual-basis and cash-basis accounting with its most appropriate description.
A. Cash basis revenue
B. Accrual-basis expense
C. Accrual-basis revenue
D. Cause-and-effect
E. Revenue recognition principle
F. Cash-basis expense
A. A company receives cash from customers in May and performs services in June. The revenue is recorded in May.
B. A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in June.
C. A company receives cash from customers in May and performs services in June. The revenue is recorded in June.
D. Informal concept in accounting which states that expenses are recorded in the same period as the revenues they help to generate.
E. Formal concept which states that sales of products or services are recorded in the period they are provided to customers.
F. A company pays cash for supplies in May and uses those supplies in June. The expense is recorded in May.
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