In accrual basis or mercantile basis of accounting, the financial effect of the transaction is recorded in the books ___________.

as and when they occur

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

on the basis of actual receipt and payment of cash

No worries! We‘ve got your back. Try BYJU‘S free classes today!

on confirmation of orders but before the delivery of goods take place

No worries! We‘ve got your back. Try BYJU‘S free classes today!

All of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is D as and when they occur
In accrual system of accounting, a transaction is recorded when as and when they occur

Suggest Corrections

Similar questions

Q. The Receipts and Payment account is prepared at the _______ of the accounting year on the basis of cash receipts and cash payments recorded in the _______ book.

Q. Receipts and Payments Account is prepared on -
(I) Accrual basis of accounting
(II) Cash basis of accounting
(III) Hybrid basis of accounting
The correct answer is -

Alan, a sports shop owner bought cricket bats in May for which he needs to pay in June. When should Alan record this transaction under accrual basis of accounting?

Q. A system in which accounting entries are made on the basis of amounts having become due for payment or receipt is called _______________.

Q. Accounting entries in the Return Inward book are recorded on the basis of a debit note.

Join BYJU'S Learning Program

In accrual basis or mercantile basis of accounting, the financial effect of the transaction is recorded in the books ___________.

The correct option is D as and when they occurIn accrual system of accounting, a transaction is recorded when as and when they occur

The correct option is D as and when they occur
In accrual system of accounting, a transaction is recorded when as and when they occur