Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and accrued items. true

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Business

Shyla Lewis

26 July, 06:38

Under the cash basis of accounting, no adjustments are made for prepaid, unearned, and accrued items. true

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Jocelyn Richardson · Answer 1

That statement is true

Under a cash basis, we only acknowledge a transaction only after cash exchange.

Under prepaid, unearned, and accrued items, we already receive the assets, but we till haven't made the cash exchange, so no adjustment is needed.