会计学原理第21版教辅资源wild ichap003.pdf

C 2 Accrual Basis versus Cash Basis Accrual Basis Cash Basis Revenues are Revenues are recognized when recognized when cash earned and expenses is received and are recognized when expenses are recorded urred. when cash is paid. Non-GAAP Accounting C 2 Accrual Basis versus Cash Basis On December 1, 2013, FastForward paid $2,400 cash for a twenty-four month business insurance . Using the cash basis, the entire $2,400 would be recognized as insurance expense in 2013. No insurance expense from this would be recognized in 2014 or 2015, periods covered by the . C 2 Accrual Basis versus Cash Basis On the accrual basis, $100 of insurance expense is recognized in 2013, $1,200 in 2014, and $1,100 in 2015. The expense is matched with the periods benefited by the insurance coverage. C 2 Recognizing Revenues and Expenses The revenue recognition pr iple states that we recognize revenue when the product or service is delivered to our customer. We have delivered the product to our customer, so I think we should record the revenue earned. C 2 Recognizing Revenues and Expenses The expense recognition (or matching) pr iple aims to reco