The transaction approach of income measurement focuses on the income-related activities that have occurred during the period.

Question

Quizplus · Accepted Answer

The transaction approach of income measurement records and measures income based on the economic events or transactions that have taken place during the accounting period. This approach is also known as the accrual basis of accounting. It recognizes revenue when it is earned, and expenses when they are incurred, regardless of whether cash has been received or paid out.

The Transaction Approach of Income Measurement Focuses on the Income-Related