One of the accounting concepts upon which deferrals and accruals are based is
A) matching
B) cost
C) price-level adjustment
D) conservatism

Question

Quizplus · Accepted Answer

The accounting concept that deferrals and accruals are based on is matching. This concept requires that expenses be recognized in the same period as the revenues they help to generate, regardless of when payment is received or made. Deferrals and accruals are two methods used to help ensure proper matching of expenses and revenues.

One of the Accounting Concepts Upon Which Deferrals and Accruals