The accounting basis that attempts to measure performance in the period in which it occurred is the:
A)Approval basis
B)Cash basis
C)Matching basis
D)Accrual basis

Question

Quizplus · Accepted Answer

The accrual basis of accounting recognizes revenue and expenses when they are earned or incurred, regardless of when cash is received or paid. This method provides a more accurate depiction of a company's financial performance for a specific period of time. The other options - approval basis, cash basis, and matching basis - all have limitations in accurately measuring performance in the period in which it occurred.

The Accounting Basis That Attempts to Measure Performance in the Period