What is the primary goal of the accrual basis of accounting?
A) Report revenue when received.
B) Match assets and liabilities in the proper period.
C) Report expenses when cash disbursements are made.
D) Match revenues and expenses in the proper period.

Question

Quizplus · Accepted Answer

The primary goal of accrual basis accounting is to match revenues and expenses in the proper period. This means reporting revenue and expenses when they are earned or incurred, regardless of when cash is received or paid. This provides a more accurate picture of a company's financial performance over time.

What Is the Primary Goal of the Accrual Basis of Accounting