As per the accrual concept of accounting, any financial or business transaction should be recorded:

(a) when profit is computed

(b) when the balance sheet is prepared

(c) when cash is received or paid

(d) when transaction occurs


(d) when transaction occurs

Accrual accounting follows the matching principle concept which states that revenues and expenses should be recognised in the same accounting period, therefore in accrual accounting, any financial or business transaction is recorded when the transaction occurs.

Also read:

Difference Between Cash Basis and Accrual Basis of Accounting

Accrual Basis of Accounting

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