Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 24 - No. 29)
What is a key element of accrual accounting?
Recognizing revenue when cash is received.
Recognizing expenses when cash is paid.
Matching revenues and expenses in the same period.
Focusing solely on cash transactions.
Explanation
Accrual accounting is built on the principle of matching revenues to the expenses that helped earn them within the same accounting period.
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