Multiple choice general knowledge

Transaction is recorded at the time it takes place and not when the settlement takes place

  1. Verifyable Objective Concept

  2. Accrual Concept

  3. Revenue Recognition Concept

  4. Cost Concept
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Accrual Concept states that transactions should be recorded when they occur, regardless of when cash is actually received or paid. This ensures that financial statements reflect the true economic activity of a period rather than just cash movements.

Keep practicing — related questions