Generally,accrual basis accounting results in a more accurate measurement of net income for the period than does cash basis accounting.

Question

Quizplus · Accepted Answer

Accrual basis accounting records revenue and expenses when they are earned or incurred, regardless of when cash is received or paid. This provides a more complete picture of the financial activities of the business in the period and can result in a more accurate measurement of net income. In contrast, cash basis accounting only records revenue and expenses when cash is received or paid, which can result in a distorted view of the business's financial performance.

Generally,accrual Basis Accounting Results in a More Accurate Measurement of Net