One of the accounting concepts upon which adjustments for prepayments and accruals are based is:
A)expense recognition.
B)cost.
C)monetary unit.
D)economic entity.

Question

Quizplus · Accepted Answer

Adjustments for prepayments and accruals are based on the expense recognition principle, which ensures that expenses are recorded in the period in which they are incurred, regardless of when the cash is paid.

One of the Accounting Concepts Upon Which Adjustments for Prepayments