Which of the following concepts is important to accrual accounting?

Question

Quizplus · Accepted Answer

Accrual accounting is based on the concept of dividing earnings into time periods, recognizing revenue and expenses when they are earned or incurred, regardless of when cash is received or paid. This allows for a more accurate representation of a company's financial performance over a period of time. The other concepts listed (monetary unit, cash basis, entity concept) are important in accounting but not specifically related to accrual accounting.

Which of the Following Concepts Is Important to Accrual Accounting