Q9- Basic Accounting Processes and Systems (ICAN ATSWA Sept 2021 Insight)

Question 9:

Accounting concept that assumes incomes should be recognized when they are and should be recorded as incurred is  

A. Accrual  

B. Historical cost  

C. Duality  

D. Entity  

E. Conservatism 

The correct answer is (A)

Past Question and Answer Review:

The accrual principle is an accounting concept that requires transactions to be recorded in the time period in which they occur, regardless of when the actual cash flows for the transaction are received. 

The idea behind the accrual principle is that financial events are properly recognized by matching revenues.

So the correct answer is (A)

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