The accrual basis does not match the cost of the efforts required to generate inflows with the inflows themselves.

Name: The accrual basis does not match the cost of the efforts required to generate inflows with the inflows themselves.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

The accrual basis of accounting matches the cost of the efforts (expenses) required to generate inflows (revenues) with the inflows themselves, recognizing expenses when incurred and revenues when earned, regardless of when cash transactions occur.

The Accrual Basis Does Not Match the Cost of the Efforts