Incomes and expenditures need to be recorded in books of account as and when there is any transaction without having to wait till their payment or receipt.

Name this concept.

Cash basis

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Accrual basis

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Double Entry Bookkeeping

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Objectivity

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Solution

The correct option is B
Accrual basis

Accrual basis of accounting concept covers that accounting transactions should be recorded in the accounting periods when they actually occur, rather than in the periods when there are cash flows associated with them.

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Similar questions

Q. In receipt and Payment account cash transactions are recorded where as in Income and expenditure account:

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

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?

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Incomes and expenditures need to be recorded in books of account as and when there is any transaction without having to wait till their payment or receipt. Name this concept.

The correct option is B Accrual basis Accrual basis of accounting concept covers that accounting transactions should be recorded in the accounting periods when they actually occur, rather than in the periods when there are cash flows associated with them.

Incomes and expenditures need to be recorded in books of account as and when there is any transaction without having to wait till their payment or receipt.

Name this concept.

The correct option is B
Accrual basis

Accrual basis of accounting concept covers that accounting transactions should be recorded in the accounting periods when they actually occur, rather than in the periods when there are cash flows associated with them.