Which of the following is not an application of accrual accounting?
A)Recognizing revenues when earned and expenses when incurred.
B)Applying the matching rule.
C)Adjusting the accounts.
D)Recording on the basis of actual receipt and payment of cash.

Question

Quizplus · Accepted Answer

Accrual accounting is a method of accounting in which transactions are recognized when they occur, regardless of when the cash is received or paid. Therefore, recording transactions based on actual cash receipts and payments is not an application of accrual accounting.

Which of the Following Is Not an Application of Accrual