PRC-1 · Chapter 10 · Question 85 of 100
The accounting principle that requires revenues and expenses to be recorded in the period they occur, regardless of when cash is exchanged, is called:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The Accrual Basis of Accounting
Explanation
The accrual basis ensures that income and expenses are matched and recognized in the period they are earned or incurred, facilitating a true and fair view of performance.
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