Accrual accounting recognizes business transactions when they occur.

Name: Accrual accounting recognizes business transactions when they occur.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accrual accounting records transactions when they happen, regardless of when the associated cash exchange takes place. This method is based on the matching principle, which matches revenues and expenses to the period in which they were earned/incurred, not the period in which they were actually paid.

Accrual Accounting Recognizes Business Transactions When They Occur