Accrual accounting is essentially an application of:
A) the conservatism principle.
B) the historical cost principle.
C) the materiality constraint.
D) the matching principle.

Question

Quizplus · Accepted Answer

Accrual accounting applies the matching principle which states that expenses should be recognized in the same period as the revenue they helped to generate. This helps to provide a more accurate picture of a company's financial position and performance over time. The other options (A, B, and C) are accounting principles/constraints, but they do not reflect the specific application of accrual accounting.

Accrual Accounting Is Essentially an Application Of