Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 11)
Which of the following is a key characteristic of accrual accounting?
Cash is recorded when it is received.
Expenses are recognized when they are paid.
Revenues and expenses are recognized when earned or incurred, regardless of cash flow.
Only cash transactions are recorded.
Explanation
Accrual accounting is about the matching principle.
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