Answer
Strict cash Basis:
a. Upon receiving cash, revenue is recorded in an entity's books.
. b. Upon the dispersion of cash, expenses are recorded.
Modified cash-basis
a. Recording of revenue transpires either once revenue is really earned or once an entity receives cash.
b. Expenses are recorded either once they are incurred or once an entity disperses cash.
Work Step by Step
Strict cash Basis:
a. Upon receiving cash, revenue is recorded in an entity's books.
. b. Upon the dispersion of cash, expenses are recorded.
Modified cash-basis
a. Recording of revenue transpires either once revenue is really earned or once an entity receives cash.
b. Expenses are recorded either once they are incurred or once an entity disperses cash.
