Question

Which accounting system best reflect the time picture of organization?

• A. Accrual system of accounting
• B. Cash system of accounting
• C. Receipts & expenditure accounts
• D. All of the above

Answer 1

The correct option is A Accrual system of accounting

Accrual system of accounting defines that revenues and cost are recorded in the books of account on the basis of their occurrence. Accrual concept says that income and expense to recorded within the financial year for which these pertain to irrespective of cash is received or paid against the transaction.

Accrual system reflects time picture of organization.