Two accounting principles central to accrual accounting basis that are relied on in the adjusting process are:
A)Revenue recognition and monetary unit.
B)Revenue recognition and going-concern.
C)Matching and cost.
D)Matching and business entity.
E)Revenue recognition and matching.

Question

Quizplus · Accepted Answer

The two accounting principles central to accrual accounting basis that are relied on in the adjusting process are revenue recognition and matching. Revenue recognition principle requires revenue to be recognized when it is earned, regardless of when payment is received. Matching principle requires that expenses be recorded in the same period as the revenue they helped generate. Together, these principles ensure that financial statements accurately reflect a company's operating performance for a given period.

Two Accounting Principles Central to Accrual Accounting Basis That Are