An accrual transaction is one in which ________.
A)the action comes before the cash
B)cash comes before the action
C)a company postpones recognizing cash transactions
D)the exchange of cash coincides with the economic substance of a transaction

Question

Quizplus · Accepted Answer

An accrual transaction is one in which the action (such as goods or services provided, or revenue earned) comes before the cash. In other words, the transaction is recognized when it occurs, regardless of when the cash exchange actually takes place. This allows for more accurate financial reporting and matching of expenses with revenues.

An Accrual Transaction Is One in Which ________