Reflecting all the transactions relating to the period of the accounts without regard to the actual date of payment or receipt is also called
A)Accrual system accounting
B)Mercantile system of accounting
C)Both A & B
D)None of these

Question

Quizplus · Accepted Answer

Both the accrual system of accounting and the mercantile system of accounting refer to the method of recording transactions when they occur, regardless of when the cash is actually exchanged. This approach matches revenues with expenses in the period in which they are incurred to provide a more accurate picture of a company's financial position.

Reflecting All the Transactions Relating to the Period of the Accounts