Accrual accounting:
A)is designed to match revenues and expenses.
B)results in the balance sheet showing the fair value of the entity's assets.
C)means that expenses are recorded when they are paid.
D)cannot result in the entity having net income unless cash is received from customers.

Question

Quizplus · Accepted Answer

Accrual accounting is designed to match revenues and expenses in the period in which they are incurred, regardless of when cash transactions occur.

Accrual Accounting