Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 31 - No. 50)
What does the 'accrual basis of accounting' primarily aim to achieve?
To accurately measure a company's cash flow.
To record revenue when cash is received.
To match expenses with revenues in the correct period.
To only recognize cash transactions.
Explanation
Accrual accounting focuses on recognizing revenue when earned and expenses when incurred, matching them in the correct period.
Comments (0)
