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The accrual basis of accounting requires adjustments to recognize revenues in the periods they are earned...

Question

The accrual basis of accounting requires adjustments to recognize revenues in the periods they are earned...

The accrual basis of accounting requires adjustments to recognize revenues in the periods they are earned and to match expenses with revenues. true or false

Answers

The accrual basis of accounting requires adjustments to recognize revenues in the periods they are earned and to match expenses with revenues.

Answer : True

Explanation

According to accrual basis of accounting concept revenues are reported on the Income statement when they are earned. Cash basis of accounting recognizes revenue when cash payment from customer are received.

Also as per accrual basis of accounting expenses are reported on the income statement when they match up with the revenues being reported.


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