The accounting concept upon which deferrals and accruals are based is
A)matching
B)cost
C)price-level adjustment
D)conservatism

Question

Quizplus · Accepted Answer

Deferrals and accruals are used to ensure that expenses and revenues are matched appropriately in the accounting period in which they are incurred, in accordance with the matching principle. This principle requires that expenses be recognized when they are incurred, regardless of when payment is made, and that revenues be recognized when they are earned, regardless of when payment is received.

The Accounting Concept Upon Which Deferrals and Accruals Are Based