If an employer were to account for a defined benefit pension plan on the cash basis, it would be a violation of the

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The accrual concept requires that expenses and revenues be recognized when they are incurred or earned, not when cash is exchanged. Accounting for a defined benefit pension plan on a cash basis would violate this principle because it would only recognize pension expenses when payments are made, rather than accruing them over the period the employee earns the benefit.

If an Employer Were to Account for a Defined Benefit