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Time Period Principle

$2$

$3$

$$ Business Entity Principle

Question $2($Mandatory$)(1$ point$)$

$5$

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Which of the following statements is correct concerning the accrual basis of accounting?

The accrual basis does not consider the revenue recognition principle.

Thg accrual basis must follow the revenue recognition principle but not the matching principle

The accrual basis uses the adjusting process to recognize revenues when eamed and to match expenses with revenues.

The accrual basis recogrizes revenues when earned and records expenses when cash is paid.

The accrual basis is the same as the cash basis of accounting.