The purpose of the accrual basis of accounting is to:
A)Report revenue when received.
B)Match revenues and expenses in the proper period.
C)Report expenses when cash disbursements are made.
D)Improve the company's earnings per share.

Question

Quizplus · Accepted Answer

The accrual basis of accounting allows a company to recognize expenses in the same accounting period as the revenues those expenses produce.

The Purpose of the Accrual Basis of Accounting Is To