Which accounting method recognizes additions of money when it is earned and subtractions of money when expenses are incurred, regardless of when the funds enter or leave the bank accounts?

Question

Quizplus · Accepted Answer

The accrual basis of accounting recognizes revenue when it is earned and expenses when they are incurred, regardless of when the cash is actually received or paid. This method matches revenues to the expenses incurred to generate them, providing a more accurate picture of a company's financial performance.

Which Accounting Method Recognizes Additions of Money When It Is