The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when ________.
A)cash is received or disbursed
B)the accounting equation changes
C)revenues are earned and expenses are incurred
D)assets increase

Question

Quizplus · Accepted Answer

The accrual basis of accounting recognizes the impact of transactions on the financial statements in the period when revenues are earned and expenses are incurred, regardless of when cash is received or disbursed. This helps to provide a more accurate picture of a company's financial performance and position.

The Accrual Basis of Accounting Recognizes the Impact of Transactions