Question

Under the accrual basis of accounting:_________.

Answer 1

events that change a company's financial statements are recognized in the period they occur rather than in the period in which cash is paid or received.

Answer: Option C.

Explanation:

Accrual basis is a technique for recording bookkeeping exchanges for income when earned and costs when brought about. A key bit of leeway of the collection premise is that it matches incomes with related costs, so the total effect of a business exchange can be seen inside a solitary announcing period.

Accounting method that records incomes and costs when they are brought about, paying little heed to when money is traded. The expression "accrual" alludes to any individual section recording income or cost without a money exchange.