When an organization uses the ___________ accounting method, it will be a better indicator of future cash flows and overall performance than using current cash receipts and disbursements.
A) accrual
B) financial
C) cash
D) general

Question

Quizplus · Accepted Answer

The accrual accounting method records income when it is earned and expenses when they are incurred, regardless of when the cash is actually received or paid. This provides a more accurate picture of a company's financial health and future cash flows than the cash accounting method, which only records transactions when cash changes hands.

When an Organization Uses the ___________ Accounting Method, It Will