The accrual basis of accounting is a system of accounting in which the adjustment process is used to assign revenues to the periods in which they are earned and to match expenses with revenues.

Question

Quizplus · Accepted Answer

The statement is correct. The accrual basis of accounting requires the adjustment process to ensure that revenues and expenses are matched to the period in which they occur, regardless of when cash is received or paid.

The Accrual Basis of Accounting Is a System of Accounting