Question

Under accrual basis accounting, revenues are recognized when goods or services are transferred to customers, and expenses are recognized when incurred to generate that revenue.

Answer 1

yep, youre right

accrual is different from cash basis of accounting as in cash basis of accounting revenue is only recognized when the party actually receives cash. and expenses are only recognized when they are related to the current financial year (so cash basis of accounting doesn't have prepaid, advance, outstanding etc..)