Which of the following defines accrual accounting system?
A) Measures the cost of replacing an employee.
B) Provides the appropriate information to the external community.
C) Records transactions when money is either received or spent.
D) Provides information to the management of a business and aids in internal controls.
E) Records transactions when they occur.

Question

Quizplus · Accepted Answer

Accrual accounting system records transactions when they occur, rather than when money is received or spent. This method allows for a more accurate representation of a company's financial performance over a specific period of time.

Which of the Following Defines Accrual Accounting System