The accounting basis that helps to measure and report revenues and expenses in a way that clearly reflects the ability of a company to generate value for its owners is referred to as:
A)Cash-basis.
B)Accrual-basis.
C)Matching-basis.

Question

Quizplus · Accepted Answer

The accrual-basis accounting method is best suited to measure and report revenues and expenses in a way that reflects the ability of a company to generate value for its owners. This method recognizes revenue when it is earned, not just when it is received, and recognizes expenses when they are incurred, not just when they are paid. This helps to provide a more accurate picture of a company's financial performance and helps investors and stakeholders make informed decisions.

The Accounting Basis That Helps to Measure and Report Revenues