Which of the following bases of accounting measurement recognises revenues when resources are created as part of an organisation's operating activities?
A) Cash
B) Financing
C) Investing
D) Accrual

Question

Quizplus · Accepted Answer

The accrual basis of accounting measurement recognises revenues when resources are created as part of an organization's operating activities, regardless of when cash is received. This method matches income and expenses to the period in which they are incurred, providing a more accurate picture of a company's financial performance. Cash, financing, and investing bases do not recognise revenues in this way.

Which of the Following Bases of Accounting Measurement Recognises Revenues