Recording transactions that affect a company's financial statements in the periods in which they occur rather than when cash is received or paid is called
A) time period accounting.
B) the cash basis of accounting.
C) monetary accounting.
D) the accrual basis of accounting.

Question

Quizplus · Accepted Answer

The accrual basis of accounting records transactions when they occur, regardless of when cash is exchanged, aligning with the matching principle and revenue recognition principle.

Recording Transactions That Affect a Company's Financial Statements in the Periods